Why Oando is under SEC investigations

The Securities and Exchange Commission (SEC) is probing Oando Oando Nigeria Plc, an oil company, based on a petition by two of its shareholders.
More details have emerged on why the leading oil marketing company is under a comprehensive investigation of SEC.
It was gathered that SEC had conducted several weeks of investigations and thereafter wrote to the board and management of Oando Nigeria to explain the alleged malpractices in the company’s financial statements.
According to Channels Television reports, SEC investigation is as a result of petitions by some foreign investors in Oando Nigeria Plc, in relation to its shareholding structure after the $1.65 billion cash that Oando paid in June 2014 to acquire the oil production assets of Conoco-Phillips in Nigeria.
Oando is listed on both the Nigeria and South Africa Stock Exchanges with shares of its subsidiary – Oando Energy Resources listed on the Toronto Stock Exchange but de-listed in 2016.
Reacting in a statement released on Friday, Oando Nigeria Plc described the investigation as being based on defamatory claims.
“The company understands that the SEC is in receipt of correspondence containing (in our opinion) unsubstantiated, misleading and defamatory claims with respect to various matters that had already received board, shareholder and where required SEC approval.
“The Company is fully co-operating with the SEC in the discharge of its duties as the capital markets regulator by providing all appropriate clarifications and rebuttals on the matters raised in the said correspondence.
”Oando will be happy to provide full disclosure of the outcome as soon as the SEC review is completed.”
Credit: Channels Television