SEC Gives Approval For Deloitte To Commence Forensic Audit Of Oando Plc

Proshare

Wednesday, March 07, 2018 1:50 PM / BusinessDay 

The Securities and Exchange Commission
(SEC) has asked Deloitte to proceed with the long awaited forensic audit of Oando Plc after the regulator was being accused of delaying the process. 

This came a day after Oando, an indigenous oil firm withdrew the pending lawsuit against the Commission by an application heard and granted by the Court of Appeal on Monday. 

An application for withdrawal by the shareholders was also earlier heard and granted by the Federal High Court 0n February 21, 2018. 

Following the dismissal and the striking out of the suits, the SEC has duly informed the firm of Deloitte to proceed with the forensic audit, Abdul Zubair, SEC acting DG told journalists at a media briefing in Abuja. 

SEC had in October last year directed the Nigerian Stock Exchange (NSE) to suspend trading on Oando to enable it conduct a forensic audit into the affairs of Oando, following petitions received from shareholders of Oando Plc., and a whistleblower alleging that the company was financially being mismanaged. 

SEC said then that it’s a comprehensive review of the petitions found a breach of the provisions of the Investments & Securities Act 2007; breach of the SEC Code of Corporate Governance for Public Companies; suspected related party transactions not conducted at arm’s length and discrepancies in the shareholding structure of Oando Plc, among others. 

The Commission later conducted a preliminary investigation of Oando Plc, based on those petitions, and according to Zubair, the Commission took steps to preserve shareholder value and protect the investing public, based on some of the findings, and consequently placed the company’s shares on technical suspension and further ordered a forensic audit of the affairs of the company. 

“Subsequently, two lawsuits were respectively filed by Oando Plc, mainly to restrain the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) from effecting a technical suspension on the shares of Oando Plc and the SEC from appointing a team of  forensic auditors to conduct a forensic audit of the company,” Zubair said at the press meeting, “Oando Plc. Has withdrawn pending lawsuit against the Commission by an application heard and granted by the Court of Appeal on March 05, 2017. 

Also the application for withdrawal by the shareholders was heard and granted by the Federal High Court on February 21,2018”. 

The DG assured of the Commission’s committed to its primary mandate of protecting investors and will take all necessary steps to fulfill that mandate and uphold the integrity of the capital market.

We therefore wish to reassure the general public that following the removal of the legal impediments, the audit of Oando Plc., will proceed in a transparent and thorough manner.
 

Meanwhile Oando Plc has announced that the 2017 full year result will be delayed due to request by the Financial Reporting Council of Nigeria (FRCN), to undertake a more detailed review of the company’s results. 

Oando in a press statement said: “The Financial Reporting Council of Nigeria (FRCN) has indicated interest in undertaking more detailed review of the Company’s Audited Financial Statements (AFS), as part of their statutory review due to the issues raised by the recent investigation of the Company by the Securities and Exchange Commission (SEC). 

“We envisage that the FRCN’s review might take longer than originally anticipated. Therefore, the company may not be able to file the accounts until the second week in May, the exact date of filing will be dependent on the turnaround time at the FLRCN.” 

Proshare Nigeria Pvt. Ltd.

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