Oando’s Planned AGM Raises Question About Unending Forensic Audit

It is exactly four months after Dr. Abdul Zubair, the then Acting Director-General of the Securities & Exchange Commission (SEC), announced to newsmen that the firm of Deloitte was told to commence the forensic audit of energy giant- Oando Plc.

This followed the striking out of two law suits instituted by the company and its stakeholders, mainly to restrain the commission and the Nigerian Stock Exchange (NSE) from effecting a technical suspension on Oando’s shares and the SEC from appointing the team of forensic auditors.

While the outcome of the audit is being awaited, the board of the company, last week filed a notice with the NSE of its plan to hold its 41st annual general meeting in Lagos on Friday, July 27, 2018.

At the meeting, shareholders are expected to receive the audited financial statement of the company and elect Alhaji Bukar Goni Aji to the board as non-executive director, believed to be representing the interest of Alhaji Dahiru Mangal, one of the majority stakeholders who petitioned the SEC, leading to the setting up of the forensic audit.

The directors would also be expected to elect Muntari Zubairu to the board, with effect from February 5, 2018, while existing non-executives like Sena Anthony, Ike Osakwe and Ademola Akinrele are being put forward for re-election, according to the notice by Ayotola Jagun, its chief compliance officer and company secretary, dated July 5, 2018.

Not only is Oando Plc’s board silent about what has/is happening to the forensic audit, the regulators- SEC and the NSE, who are not forthcoming about the outcome of the exercise.

None of their officials have thought it necessary to say how much longer other stakeholders will wait anxiously for the announcement, amidst fears about a likely compromise, especially following the last faux pas that led to the ouster of Zubair and appointment of Ms. Mary Uduk.

Reacting to the planned AGM however, members of the Proactive Shareholders Association of Nigeria (PROSAN), at the weekend, described the company’s 2017 audited financials as dismal and well below expectations, especially given the inability of the directors to propose a dividend in view of its backlog of losses spanning five years.

The shareholders accuse Finance Minister, Mrs. Kemi Adeosun, as well as Uduk and her management team of unnecessarily delaying the release of the forensic audit. They want it published without further delay.

The commission is still to make any official statement on these issue on Monday evening.
https://investdata.com.ng/2018/07/oandos-planned-agm-raises-question-unending-forensic-audit/