Some shareholders in Nigeria’s capital market have faulted the sanction placed on Oando Plc by the Securities and Exchange Commission (SEC).
Speaking on behalf of Oando’s shareholders yesterday, Alhaji Kabiru Tambari, alleged that SEC‘s intention is to kill the company. According to him, the regulator’s actions against the oil company defies logic.
He went further to state that his fellow shareholders and himself are not happy over the situation.
“We are not happy at all with has happened. Wale Tinubu and his management team have suffered, they have put their resources; energy, time; to keep this company moving forward and now the SEC wants to take it away from not just them but us the shareholders as well.
“When the company was making losses the SEC didn’t bring up all these infractions and sanctions, but now the company is doing well and has returned to profit and they’ve come with such drastic actions. This will foil the company’s attempt to pay us dividend at the end of the year. It is clear that the SEC wants to kill the company.”
Atedo Peterside’s Reaction: Earlier on, the Founder of Stanbic IBTC Holdings Plc, Atedo Peterside, expressed his concerns over the development. He specifically wondered why the capital market regulator was refusing to publicly disclose the supposed findings from its investigation into the affairs of Oando Plc.
On Oando, what I dont understand is why the SEC would not give the findings of the Forensic Audit to Oando and give them an opportunity to defend themselves? The findings of the Forensic Audit should be made public alongside Oando's responses so we can all judge for ourselves?
— Atedo Peterside (@AtedoPeterside) June 1, 2019
Why shareholders are furious: According to the shareholders, the move by the Securities and Exchange Commission on the company could cause the following;
- Devalue the company’s share price, thereby putting its shareholders on the losing end.
- Affect the company’s intention to pay its shareholders dividend at the end of the year.
- The company might even be unable to pay salaries, thereby causing job loss.
- It would weaken market confidence in the company.
- It would deter foreign direct investments (FDIs) in the company.
Injunction against SEC: As Nairametrics reported, SEC’s announcement of an interim management team for Oando Plc was met with immediate legal action by Wale Tinubu, the GCEO of the company. Consequently, a Federal High Court in Lagos gave a ruling on Monday, which restrained the regulator from removing either Wale Tinubu and his Deputy, Omamofe Boyo.