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Afroil still under investigation SEC?


September 30 , 2008 /PETER OBIORAProshare NI

- No issues says Afroil


The Securities & Exchange Commission (SEC) is still investigating Afroil Plc on allegations of Price Manipulation. This was confirmed by a source at the Commission close to Proshare NI.


SEC had last February affirmed that it was investigating price manipulation in six companies. The companies included: Big Treat Plc, Capital Oil Plc, Afroil Plc, African Petroleum Plc, IPWA Plc and First Aluminium.



If the Apex Regulatory body in Nigerian’s Capital Market has cleared Africa Petroleum Plc (AP), are we to assume that all others including Afroil are cleared?



Indeed if AP was cleared by SEC and was allowed to approach the Capital Market to raise fresh funds; without the Regulatory body making it open; this could be attributed to one of the causes of market disenchantment.



A fortnight ago Afroil held its Annual General Meeting (AGM) and officials of SEC were present at the event.



Olakunle Sanni, Chairman and Chief Executive Officer (CEO) of Afroil have indicted SEC for its purported role in the price manipulation saga.



“SEC has been conducting investigation for about eight months for a company as small as Afroil, while they have concluded investigations on AP with bigger volumes and activities; that should give Nigerians a thought for concern” he said.



Sanni confirmed to Proshare NI that Afroil has not yet received any letter from SEC on the true situation of the matter and what Afroil has done wrong.



“I can confirm to you that on the issue of price manipulation as alleged by SEC, Afroil has not received a letter in the past eight months from the Commission as to that regard” Sanni said.



He also affirmed that SEC does not have any evidence against Afroil, therefore should swallow its pride and come out with the true position of the matter.



Sanni further affirmed that the Commission did not come out with allegations; but preliminary judgement on Afroil, “is the so called investigation on Afroil an open ended investigation, they did not come out with an allegation against Afroil, but a preliminary judgement” he said.



He also affirmed that somebody somewhere have fooled the nation; which calls for an investigation. “Looking at our options, the nation has been fooled and this has caused some problem in the Capital Market” Sanni said.



Sanni also affirmed to Proshare NI that SEC deliberately targeted Afroil as an Oil Marketing Company, “they only used the other companies as decoy to carryout their personal interest in the company” he said.

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