SEC may sanction Cadbury for non-compliance to directive
Category: Investors NewsBeat
May 14, 2008 at 15:34 GMT
Securities & Exchange Commission (SEC) may sanction Cadbury Nigeria Plc, for non-compliance to its directive to pay a fine of N100, 000.00 in the first instance and a penalty of N5, 000 per day from June 30, 2002 to December 14, 2006 within 21 days from the date of its decision on the company for malpractices; failing which trading on its shares will be suspended.
Cadbury Nigeria had earlier furnished the Commission, financial statements that were doctored and misleading; Prior to this time, SEC has also directed that Cadbury Nigeria should pay a penalty of N5, 000 per day also of the same period and within 21 days from the date of the decision for failing to provide adequate funds for the payment of dividends to its shareholders despite the Commission\'s earlier directive.
A source close to Proshare NI made this affirmation today in Lagos Nigeria at the end of the 2008 second quarterly Capital Market Committee (CMC). ÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã¢â‚¬Â¦ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œFor non-complaint to SECÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s directives that fines should be paid by Cadbury Nigeria having been found guilty of the above, the company may be sanctioned tomorrow May 15, 2008ÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â
In the same vein, information obtained from SECÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s official website, Akintola Williams Deliotte, External Auditors to the company were indicted for the part they played in the Cadbury Nigeria saga and had since paid a fine of N20 million slammed on it by the regulatory authority.
Apart from this, the Auditing firm has also undertaken to be of good conduct; however, a notice of intention to appeal has been given to the Commission.
Also Union Registrars Limited, Registrars to Cadbury Nigeria were also indicted for the part they played by not dispatching and paying dividend warrants to shareholders of the company. SEC fined Union Registrars N7.615 million which they have paid, but yet to sign an undertaking from the information obtained from the commissionÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s official site.
However, as at the time of filling in this report, Proshare NI sought to clarify the information from Lanre Oloyi, Head, Media of the Commission who could not immediately confirm it. ÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã¢â‚¬Â¦ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œI know of the meeting on the Cadbury issue, but I cannot readily confirm the latest on it, I will get back to youÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â Oloyi said.
He confirmed to Proshare NI that it was only Akintola Williams Deliotte and Union Registrars that had complied with the regulatory authority directive.