THERE IS MORE TO THE OANDO/ SEC ISSUE

Let us face it, if what was published by Premium Times today as the official letter from the Security and Exchange Commission (SECNigeria) to Oando PLC on the reasons for SEC's recent actions on Oando, then there is more to the whole thing.

For one, according to the said official letter signed by SEC's Head Legal Department, Braimoh Anastasia, of all the issues raised only the alleged corporate governance breach is of any current nature.

It is alleged that Oando's board fixed the group CEO and his deputy's pay while the GCEO fixed that of all other executives contrary to SEC's corporate governance code. Fine, but the point to note is that this fact is derived from the governance report submitted by Oando dated December 2016 and not the product of any whistle blowing. Does this kind of breach deserve SEC's almighty hammer?

If it doesn't, then it can be inferred that SEC is angry and has acted more in view of reported sale of a subsidiary way back in 2014 without formal approval from SEC; alleged declaration of dividend as profit from this sale turned year end performance into profit instead of loss; alleged insider trading between January and October 2015 prior to the release of the 2014 figures.

Also stated as part of Oando's crimes is the payment of dividend to its registrars for transmission to shareholders in piecemeal and the fact that the last audit of the company was by KPMG back in 2012.

So, let us get answers from SEC to the following questions. How come it took so long and purported whistle blowing to find out a subsidiary sale in 2014 that was clearly stated in the company's books is just now being discovered as illegal because there was no SEC approval. Who approved the 2014 annual report BEFORE Oando released it to the public?

Why did it take alleged insider trading to be discovered two years after it reportedly took place? What kind of market operators and overseers do we then have in the Nigerian stock exchange and SEC (in particular)?

You say a quoted company in Nigeria was last audited in 2012 and that company happens to be a very active one in the market since then, where indeed are the real accusing fingers pointing? Towards Oando? Someone must be joking with the Nigerian capital market and investors confidence.

To cap it all, you set up an audit and the one to be audited has not been found guilty and almighty SEC says the accused company should bear the whopping N160m bill which Oando was never privy to fixing. Would it not have been better for the company to be penalised AFTER being found guilty?

By the way, where does all the millions quoted companies pay to SEC, and other charges SEC collects from being market overlord go into? Can SEC not bear this N160m bill and wait for the guilty to be punished?

The truth is Oando is a quoted company owned by shareholders of different shades and it as legal person deserves to survive and stay as a going concern INSPITE of any malfeasance by its managers.

So please let's handle this matter with care that it deserves and allow blames to land where they should eventually in the interest of the Nigerian capital market.

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