One of the “Big Four” accounting firms in the world, Deloitte Touche Tohmatsu Limited, has reacted to the lingering issue between Oando Plc and the Securities and Exchange Commission (SEC).
In a statement made available to the public, the accounting firm threatened that “it may resort to responding in details to all aspects of the press release as it relates to us and reserves the right to do so at a later stage should it become necessary.”
- Nairametrics understands that Deloitte’s reaction is coming after the oil and gas company said it was not given fair-hearing in the course of SEC’s investigation.
- SEC had claimed that it gave fair-hearing to Oando Plc and that Deloitte was engaged during the investigation process after it was petitioned to investigate the activities of the company.
- The capital market regulator also claimed that “Oando Plc was given sufficient opportunity of being heard and accorded several opportunities to rebut the issues revealed by the investigation.”
- SEC went on to state that these opportunities were made via engagement with Deloitte in the course of its audit of the company’s business.
- After observing certain infractions allegedly committed by Oando Plc, SEC said it engaged Deloitte to conduct a Forensic Audit of the activities of Oando Plc.
According to SEC, the findings from the report of the Forensic Audit revealed serious infractions such as false disclosures, market abuses, misstatements in financial statements, internal control failures, and corporate governance lapses stemming from poor board oversight, irregular approval of directors’ remuneration, unjustified disbursements to directors and management of the company, related party transactions not conducted at arm’s length, amongst others.
Genesis: Oando and SEC have been at loggerheads since the regulatory body released its investigation into the activities of the management of the company. SEC accused the management of market abuses and false disclosures, demanding the resignation of Tinubu, the Board chairman, and other executives and directors of the company.