OANDO Plc has disclosed the reason why the integrated oil giant has delayed the release of its third (Q3) Unaudited Financial Statement for 2020.
The company stated that the inability of the oil company to meet its 2020, Q3 filing of accounts obligation, which was due on November 20, 2020, is as a result of the indefinite suspension of the company’s 2018 Annual General Meeting (AGM).
This was disclosed in a notification by OANDO for shareholders and stakeholders, which was sent to the Nigerian Stock Exchange (NSE) on December 7, 2020.
The suspension of the AGM of the company by the Securities and Exchange Commission (SEC) follows the Ex-parte Oder of the Federal High Court, Ikoyi, Lagos, in a suit involving the Group Chief Executive Officer of OANDO, Wale Tinubu & Anor vs Security and Exchange Commission & Anor.
The statement from OANDO partly reads, ‘’Pursuant to the directive of the Nigerian Stock Exchange (NSE) this is to update OANDO Plc’s shareholders and stakeholders of the delay in the release of the company’s 2020 Q3 unaudited financial statements (2020 Q3 UFS) by the due date of November 20 2020 (as extended) and as prescribed by the NSE rules on filing of accounts and treatment of default filing.’’
‘’The inability of the company to meet its 2020 Q3 UFS NSE Filing of Accounts obligation by the stipulated due date is as a result of the indefinite suspension of the company’s 2018 Annual General Meeting (AGM).’’
What you should know
It can be recalled that on July 20, 2020, through an official press statement, OANDO had informed its shareholders that the Security and Exchange Commission notified the public and OANDO on Monday, June 10, 2019, that further to the Ex-parte order of the Federal High Court, Ikoyi, Lagos in Suit No: FHC/L/Cs/910/19 in Mr Jubril Adewale Tinubu & Anor v Securities & Exchange Commission & Anor, it had suspended the company’s 2018 AGM till further notice.
OANDO noted that due to SEC’s suspension of its AGM, the company has been unable to appoint Auditors to begin an audit exercise into the company’s 2019 accounts. In addition to this, the suspension has also led to the inability of the Directors to lay before the shareholders for approval the following;
- 2018 Audited Financial Statements
- The shareholders’ inability to re-appoint the auditors of the company to hold office for the 2019 financial year
- The inability of the company to meet its 2019 financial year-end NSE Filing of Accounts obligation by the due date of March 31, 2020
- The inability of the company to meet its 2020 Q1, Q2 and Q5 UFS NSE Filing of Accounts obligations by their respective stipulated dates
The action by SEC follows the alleged discovery of infractions in the management of the oil firm after the conduct of a forensic audit due to receipts of 2 petitions from Dahiru Mangal and Ansbury Incorporated. Some of these infractions include alleged corporate governance lapses, internal controls failure, suspected market abuse, insider dealings and issues arising from the sale of a subsidiary, payment of interim dividends despite liquidity constraints and so on.
Why is SEC punishing small investors and minority shareholders of this company in perpetuity ? How has the suspension of the AGM affected Tinubu and Co ? SEC lost on self inflicted pain of Oando matter in court and resort to punish the market and minority shareholders .
There was no board in SEC and no APC constituted in line with the applicable rules and you assume audit queries and reply is same thing as fair hearing given to a smart dude like Tinubu and co with immense resources and influence to succumb to a regulator sheer moral intimidation?
These guys are simply saying SEC you acted beyond your powers no matter how morally correct you are and we know the rules and the court is a court of law and not a court of morals .
We have thought with a SEC board in place this issue ought has been settled out of court and bad boys pays the fines and promise to sin no more so that market confidence can return and small shareholders who bought Oando shares at #90 can have something now the company has started doing well in terms of paying down their debts and profitability .
INEPT regulations(old head master regulator) is the biggest challenge of the market . London attracts world class businesses is simply about regulation and timely resolution of business disputes .