Accounting firm Deloitte and four other companies have been appointed by the Securities and Exchange Commission (SEC) to conduct a forensic audit on the affairs of Oando Plc. Other members of the team are, United Securities Limited; the law firm, SPA Ajibade & Co; Tjadap Consulting and Associates; and Nasiru Muhammad & Co
SEC in a statement issued Wednesday stated that the audit was a fall out of findings it had conducted which contained evidence that Oando Plc had breached sections of the Investment and Securities Act (ISA) 2007 and the SEC Code of Corporate Governance. SEC also stated that there was evidence of insider trading and related party transactions not being conducted at arm’s length.
What is a forensic audit ?
A forensic audit is the process of reviewing reviewing company’s audited financial statements to confirm if they are accurate and lawful. It is usually conducted to ascertain if management have abused a company’s internal control processes.
Two shareholders, Alhaji Dahiru Mangal and Ansbury lnc, ( owned by Gabriel Volpi) sent a petition to the SEC that a gross abuse of corporate governance and financial mismanagement by the Wale Tinubu-led management is leading to a downturn in the fortunes of the company. The petitioners wanted the Securities Exchange Commission (SEC) to force a reconstitution of the management board, bringing the current management team to book for their alleged financial recklessness. They also requested that the company’s Annual General Meeting (AGM) be suspended
SEC, however declined their request, and AGM held on the 11th of September 2017, during which a vote of confidence was passed on the company’s management. The Johannesburg Stock Exchange yesterday suspended trading in the stock, following the NSE’s footsteps.
