Oando Shareholders seek accelerated investigation as Johannesburg Stock Exchange suspend firm

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Shareholders of Oando Plc on Thursday commended the resolve of Securities and Exchange Commission (SEC) to investigate allegation leveled against management of the company.

Meanwhile, the Johannesburg Stock Exchange (JSE) on Thursday suspended trading in the shares of the company.

SEC had in a circular on Wednesday directed the Nigerian Stock Exchange (NSE) to place the shares of Oando Plc on technical suspension till further notice.

The commission also announced that “it is necessary to conduct a forensic audit into the affairs of Oando Plc”

Reacting to the development on Thursday, National Coordinator Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie said the decision will restore investors’ confidence in the capital market.

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According to him, it’s imperative that SEC investigate and make observations public without delay.

“All bottle neck must be blocked. Thorough investigation is necessary. All decision must be made public”, he said.

Another shareholder, Chief Stephen Ozoloka, said the move by SEC has further given the needed impetus for the capital market to thrive based on its zero tolerance for infraction.

He noted that the prompt decision of the commission to put on hold trading in the shares of Oando will guide against a possible run on the value of the shares of the company, which would have been detrimental to members of the company interms of value of their holdings.

He reiterated that by virtue of the SEC’s decision, hope has been further restored to the market. “My hope is that the commission should be however be careful not to abuse its regulatory role. They should be firmed in taking whatever decision once they conclude with their findings”, he added.

It would be recall that some shareholders of the company had said penultimate week that, “We have observed for three good years now that the financial operations of Oando Plc was of worrisome critical matters that affect our investment. No dividend was paid since 2013 financial year. Critical financial management concern on our investment areas follows:

“External auditors of Oando Plc reported strong doubtful going concern of the group annual financial statement. The group has negative working capital of over N263billion with current liabilities exceeding current assets. The petition further stated that the management of Oando was unable to service its financial obligations. The group has accumulated losses of over N159 billion in its balance sheet as at 2016 year end, “he said.