SEC set to begin Oando audit

The Securities and Exchange Commission (SEC) has notified Nigerians of an impending forensic audit into the affairs of Oando PLC, the nation’s capital market regulator said on Tuesday it was set to commence the exercise.

The acting Director General of the Commission, Dr. Abdul Zubair, said the decision to commence the audit exercise followed the vacation of the two lawsuits that stalled the exercise.

Notice about the audit was given by Zubair on December 5, 2017 following petitions from some shareholders accusing the management of the company of gross misconduct.

Following the petitions by Dahiru Mangal and Andsbury Plc, the regulatory authorities had, apart suspension of trade on the shares of the company on the Nigerian Stock Exchange, ordered a forensic audit into its operations.

But due to the suspension from office last November of the former director general of the Commission, Mr. Mounir Gwarzo, by the Finance Minister, Kemi Adeosun, the audit exercise was stopped.

Zubair said on Tuesday that the two lawsuits by Oando PLC and some of its shareholders have finally been vacated, adding that the withdrawal of the suits followed an application heard and granted by the Court of Appeal on March 5, 2018.

On February 21, 2018, some aggrieved shareholders of the company also withdrew similar application after the Federal High Court heard and granted and application by the Commission.

“Following the dismissal and striking out of the suits, the SEC has duly informed the firm of Deloitte to proceed with the forensic audit,”  Zubair said in statement.

The acting DG said the SEC had conducted a preliminary investigation of allegations against Oando based on the petitions and based on some findings “took steps to preserve shareholders value and protect the investing public.”

Apart from placing the shares of the company on technical suspension, he said the decision by the Commission to order the forensic audit was to get to the root of the allegations.

He restated the Commission’s commitment to uphold its primary mandate of protecting investors by taking all necessary steps to uphold the integrity of the capital market.

The SEC boss promised that the audit would proceed immediately “in a transparent and thorough manner”. The Commission did not specify the duration the audit.