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Tag: SEC

  • SEC orders stoppage of issuance of dividend paper warrants

    As part of its major capital market initiatives, the Securities and Exchange Commission (SEC) on Tuesday directed all registrars to stop the issuance of dividend paper warrants.

    The Acting Director General, SEC, Dr. Abdul Zubair, said this during a media briefing.

    He said the stoppage of the issuance of dividend paper warrants would take effect from January 1 this year, adding that all paper warrants issued up till December 31, 2017 were still valid and should be honoured by banks.

    He said, “In line with the approved rules of the Commission, all registrars have been directed to stop the issuance of dividend paper warrants with effect from January 1, 2018.

    “For the avoidance of doubt, all paper dividend warrants issued up till December 31, 2017 are valid and should be honoured. Banks and registrars are accordingly implored to please note and adhere.”

    He also said the commission, in a bid to encourage many investors to consolidate their multiple subscriptions into one account, has also extended the forbearance for multiple accounts till March 2018.

    He added, “Investors that bought shares of the same company during public offers, using different names are allowed till 31st March, 2018 to continue to approach their stockbrokers or registrars to regularise their shareholdings, in line with SEC on customer identification.

    “Thereafter, all shares not regularised shall be transferred, on trust, to the Capital Market Development Fund.”

    On the issue of electronic dividend, Zubair said the free registration exercise for investors ended on December 31, 2017 in line with the stipulated deadline.

    He said during the period of the free registration exercise, the Commission spent the sum of N315m to underwrite the mandate of 2.1 million shareholders.

    He said henceforth, all investors that are yet to enroll under the e-dividend platform would now do so after the payment of a marginal cost of N150.

    “Such investors should continue to approach their banks or registrars, as usual, to seamlessly mandate their bank accounts for the collection of their dividend electronically, including unclaimed dividend not exceeding 12 years of issue, as the N150 would not be demanded from them at the point of registration,” he added.

  • Oando heads to Appeal Court over ‘biased’ SEC sanctions

    Oando PLC has challenged at the Appeal Court the findings and sanctions on it by the Securities & Exchange Commission (SEC), following an alleged investigation, which began in May 2017.

    SECs had placed technical suspension on Oando PLC shares and ordered a forensic audit into the company’s affairs.

    A statement published on Oando’s website on Friday states that in addition to legal action, it has written several petitions to various arms of the government expressing concern at the way the SEC under the leadership of ex-Director General, Mounir Gwarzo, managed the investigation and their belief is that the investigation was biased, did not follow due process and lacked fairness.

    The company added that a recent leak of the signed September 18, 2017 report of the Technical Committee that was set up by Gwarzo to investigate them is further proof that under his leadership actions taken by the commission were illegal, invalid and calculated to prejudice the business of the company.

    Gwarzo set up a five-man committee to investigate the company and on conclusion present a report with findings and recommendations for sanctions. The report shows that the committee found that Oando had satisfactorily responded to all the issues raised by the petitioners and had further recommended that the responses provided by the company and its independent external auditors be forwarded to the petitioners for their information and further escalation if they deemed it necessary.

    The report makes no recommendation for the shares of the company to be suspended or for a forensic audit of the company to be conducted.

    Instead, the committee recommended that certain unresolved issues be forwarded to the Securities and Investment Services (SIS) department of the Commission to determine whether there was in fact a breach of the ISA or the SEC Rules.

    On 27 September, 2017, the Committee of the House of Representatives on Capital Markets and Institutions summoned Gwarzo and mandated him to complete his investigation into Oando and issue a report within two weeks of that meeting.

    They also requested that they be sent a copy of the report of the investigation, its findings and recommendations.

    “It is interesting to note that Gwarzo failed to inform the House of Representatives that at the time the meeting was held, the signed Technical Committee report had already been submitted. It wasn’t until a month after, on Wednesday, 18 October 2017 that the SEC published a statement on its website detailing alleged infractions committed by Oando and weighty penalties, which included a directive to the Nigerian Stock Exchange (NSE) for a 48-hour full suspension followed by a technical suspension in the trading of Oando shares and for a forensic audit into the affairs of the company to be conducted,” the website explained.

    Against this background, the company cites a multitude of other reasons why it believes the investigation was biased and thus flawed.

    Among the reasons were the fact that some of the actions taken by the then DG were against SECs rules and regulations.

    Under the SEC rules, the Administrative Proceedings Committee (APC) is the committee empowered to look into matters of the nature of which the petitioners alleged.

    However, Gwarzo did not utilise this committee but instead set up a Technical Committee and later a Special Task Force to investigate Oando.

    SEC laws state that the DG does not have the legal or administrative authority to set up committees; only the board can do this.

    However, at the time of the investigation, SEC had no board and even if it did, there was a committee already in place that could investigate the company.

    There is also the legality of SEC investigating a petition brought by an indirect shareholder and one that is currently in arbitration when SECs rules categorically state that it will not consider any complaints regarding matters that are already the subject of arbitration or court proceedings.

    In Oando’s statement, it cites the example of MRS Oil and Gas PLC, where the SEC stopped investigating and a call for a forensic audit into MRS when it was brought to the regulators attention that there were ongoing arbitration proceedings in France between Petroci Holdings and MRS.

    The company and its shareholders have continuously raised concerns at the public nature of the investigation. At the company’s AGM in August, shareholders had spoken out about the substantial amount of media attention the investigation was receiving.

    According to the Group Chief Executive Officer (GCE), Oando PLC, Wale Tinubu: “The SEC investigation and continued media leaks have had a deleterious impact on market confidence, our share price and a negative impact on other critical stakeholders.”

    The statement makes mention of further bias by SEC agreeing to meet with the petitioners but not Oando during the course of the investigation despite several requests by the company for a meeting.

    The reclassification of one of the petitioners, Ansbury Inc. as a whistleblower despite the fact that Ansbury brought its petition to the SEC as an indirect Oando shareholder and previous SEC investigations, ie Ikeja Hotels, where the SEC did not suspend the shares of the company when it embarked on a forensic audit.

    More recently when SEC released its alleged findings and sanctions, the company was quick to respond and point out to the SEC and the public that the alleged infractions all have specific SEC penalties, none of them whether singularly or together warrant the suspension of the trading of Oando shares or the institution of a forensic audit.

    The company’s most ardent objection to the forensic audit is the fact that SEC has itself said it needs to do an audit to confirm its weighty findings. It is unjust to make a company pay N160 million to be investigated so the regulator can confirm whether its findings are indeed correct or true. It begs the question how did the regulator come about its weighty findings?

    The company’s biggest concern is that because all actions to date have been illegal and biased then a forensic audit could also be biased.

    This is not the first legal action taken by the company against SEC on this investigation but its recent actions is evidence that it won’t back down and will fight SEC until justice prevails.

    Consequent to the indefinite suspension of Gwarzo on allegations of corruption by the Minister of Finance, the SEC had notified Oando that it would commence the forensic audit with effect from December 6, 2017. According to the company, the appointed auditors are yet to approach the company to commence the audit.

    Oando concluded the statement by expressing willingness to comply with the directives of the commission.

    The company said: “Despite our objections to the forensic audit, the company would like to reiterate that we recognise and respect the authority of the commission and in the spirit of cooperation, transparency and full disclosure, the company will comply with the directives of the commission whilst reserving our legal rights in this matter.

    “Accordingly, we welcome the appointment of Dr. Abdul Zubair as the Acting Director-General (ADG) of the SEC and see this as an opportunity for the regulator to act independently and for a new and enduring relationship to be established. We trust that he will investigate the matters raised in an independent and transparent manner and look forward to his support in ensuring due process is indeed followed.”

    The company reiterated that it recognises and respects the authority of the SEC and is hopeful that a new and independent DG will act in the best interests of the company and its 274,000 shareholders.

     

  • Suspended SEC DG, Gwarzo trying to blackmail me – Adeosun

    The Minister of Finance, Mrs Kemi Adeosun, on Friday, alleged that the suspended Director-General of the Securities and Exchange Commission, Mr Mounir Gwarzo is doing everything possible to blackmail her.

    The minister, however, noted that no amount of intimidation from the suspended DG will stop the Administrative Panel of Inquiries set up to probe him (Gwarzo).

    The minister said this during a chat with journalists at the ministry’s headquarters in Abuja.

    Adeosun described as untrue, claims by the suspended DG, that she attempted to stop the forensic audit by SEC into the activities of Oando Plc.

    She wondered why Gwarzo could resort to peddling falsehood when in fact he was given a right of fair hearing through an administrative query.

    Adeosun said that she decided to speak now to set the records straight, because the actions so far taken by Gwarzo since his suspension by the government is capable of eroding investors’ confidence in the capital market.

    She described the allegations against Gwarzo as very weighty as the ministry is in possession of records that shows inconsistencies in the handling of the affairs of the commission by the suspended DG.

    Adeosun said, “Mr. Gwarzo has alleged that his suspension was due to his refusal to stop the forensic audit of Oando Plc.

    “I would not have ordinarily responded in view of his responsibility for the approval of the Constitution and Terms of Reference for the Administrative Panel of Inquiry into the allegations against Mr. Gwarzo.

    “However, given the degree of speculations and the potential impact on the capital market, there is a need to set the records straight as follows:

    “The integrity of the capital market is vital to the growth of the Nigerian economy and must be managed in an orderly and transparent manner to ensure investors’ confidence. Its leadership must maintain and be seen to maintain the highest standards of integrity.

    “That the original decision taken by SEC on October 20, 2017 to suspend the shares of Oando Plc and conduct a forensic audit, was approved and endorsed by the Federal Ministry of Finance.

    “The SEC team, led by Mr. Mounir presented adequate evidence to the minister of finance and her team, that Oando Plc had a clear case to answer with regard to infractions of the Investment and Securities Act.”

  • FG approves appointment of Abdul Zubair as acting DG of SEC

    FG approves appointment of Abdul Zubair as acting DG of SEC

    The Federal Government on Sunday announced the appointment of Dr Abdul Zubair as acting Director-General, Securities and Exchange Commission (SEC).

    Mrs Efe Ebelo of the commission’s Corporate Communications Unit, said in a statement made available to the News Agency of Nigeria (NAN) in Lagos that the appointment was with immediate effect.

    Ebelo stated that the appointment followed the suspension of Mr Munir Gwarzo, the commission’s boss.

    She assured the investing public and stakeholders, both local and international, of the commission’s commitment to ensuring uninterrupted and orderly operation of the market and regulation.

    Until his appointment, Zubair was the Director in charge of External Relations in the commission.

    Ebelo stated that the SEC would continue to ensure the stability of the Nigerian capital market and sustain the all-time high level of investors’ confidence.

    She added that recent developments in the commission would not be allowed to disrupt its regulatory effectiveness and efficiency as statutory regulator of the capital market.

    She assured that the market would run smoothly despite the development.

    Ebelo said the commission patiently awaited the outcome of the assignment of the Administrative Panel of Inquiry set up by the Minister of Finance to investigate the allegations against the former boss.

    She said that at no point would the management allow the operational independence of the commission to be compromised.

    “This is strictly in line with the objectives and principles of securities regulations as set out by the International Organisation of Securities Commissions (IOSCO), to which Nigeria is a signatory,’’ she said.

    Ebelo said that the commission would continue to be faithful to its developmental mandates as enunciated in the Investments and Securities Act (ISA).

    She added that SEC would ensure market efficiency, accountability and transparency and would proceed with all regulatory matters currently before it with.

    She said the commission would do that with all sense of objectivity and fairness and with the best interest of investors.

    She added: “in this regard the commission will make public its decisions on matters before it as promptly as such decisions are being arrived at.

    “The role of the capital market in economic stability and growth cannot be over-emphasised, hence the commission will not at any time permit the abandonment of its regulatory and developmental responsibilities.’’

    TheNewsGuru.com reports that the Minister of Finance, Kemi Adeosun, on Nov. 29 suspended the former DG, Gwarzo over allegations of financial impropriety.

    Adeosun immediately set up an administrative panel of inquiry to investigate the allegations.

    She said that the suspension of Gwarzo was to allow for an unhindered investigation of several allegations of financial impropriety leveled against him.

    She also suspended two other senior staff of the commission: Abdulsalam Naif Habu, Head of Media Division; and Anastasia Omozele Braimoh, Head of Legal Department.

    The acting director-general is an alumnus of Ahmadu Bello University, Zaria, where he received B.Sc. Economics, MBA, M.Sc. and PhD Business Administration degrees.

    He also holds a PGD (Mathematics & Computer Science) and a PGD (Education) from other universities.

    He has over 25-year cognate experience in the financial industry and the academia. (NAN)

  • Probe committee lists nine firms for invitation over suspended SEC-DG, Gwarzo

    The panel, set up to probe the suspended Director General of the Securities and Exchange Commission, Mr. Mounir Gwarzo, is set to invite nine firms alleged to have been used by him to siphon funds from the commission.

    The report of the panel is expected to be sent to the Independent Corrupt Practices and Other Related Offences Commission, which is also investigating Gwarzo.

    The firms include Outbound Investment Limited, Medusa Investment Limited, Northwind Environmental Services, Micro-Technologies Nigeria Limited, Tida International Limited, Outlook Communication, Acromac Nigeria Limited, Balfort International Limited and Interactive Worldwide Nigeria Limited.

    According to some petitions against Gwarzo, some of the companies allegedly belong to him or his relatives.

    In one of the petitions, it was alleged that one of the companies, Outbound Investment Limited, is owned by the suspended SEC boss while another firm, Medusa Investment Limited, is jointly owned by Gwarzo and his wife, Khadija.

    The petition read in part, “Mr. Gwarzo and two of his relatives are directors of Outbound Investment Limited. Since Mr. Gwarzo assumed office as the DG of the commission, the company has been the sole supplier of diesel to the commission.

    “The company has also supplied air conditioners to the Lagos zonal office of the commission as well as supplied fridges to the commission. Payments made by the commission to the company for contracts executed can be verified from the company’s bank account held with account number 1016723428.

    “Mr. Gwarzo is also the director of Medusa Investment Limited. The only other director of the company is Khadija Mustapher, his wife. The company has actively been used to carry out illegal transactions through the company’s bank account with Guaranty Trust Bank with number 0023953920.”

    In the petition, sent to the House of Representatives, Gwarzo was accused of diverting money from the commission under the pretext that he was organising staff training.

    Some shell companies, which lacked the requisite expertise, were alleged to have been paid bogus sums of money for the training.

    The petitioner added, “Prior to Mr. Gwarzo’s tenure, the commission used to pay between N60,000 and N150,000 to reputable training providers such as the Institute of Chartered Accountants of Nigeria, Nigerian Institute of Management, Financial Institutions Training Centre, Nigerian Institute of Advanced Legal Studies, Lagos Business School and Centre for Management Development to train staff of the commission.

    “However, when Mr. Gwarzo assumed office as SEC DG, he commenced paying sums ranging from N700,000 to N780,000 per staff (sic) as training fee to training institutions owned by his friends and associates.

    “Some of the training providers were disguised as reputable foreign training organisations even when it was evident that some of the training providers did not have any pedigree or history of training anyone abroad.”

    Gwarzo also allegedly collected the sum of N6m from the commission to fly first-class to Hong Kong in October 2016 in total disregard for the Federal Government’s directive issued in April 2016 in circular SGF/6/S2/X/545, which prohibited public officials from flying first-class.

    The N6m was said to have been paid into his Guaranty Trust Bank account with number 0023868895.

  • Mounir Gwarzo, SEC DG allegedly paid self N104m severance benefit

    The Director-General of the Security and Exchange Commission, SEC, Mounir Gwarzo, allegedly got a severance package of N104 million from the same commission shortly after he was named DG two years ago.

    Before his appointment as the SEC DG by former President Goodluck Jonathan on May 22, 2015, Gwarzo was an executive commissioner at SEC.

    On assuming office as DG, he allegedly paid himself the hefty package as entitlement for being an executive commissioner for two and a half years.

    Despite the opposition mounted by the acting head of SEC legal department, Frana Chuwuogo, Gwarzo allegedly received over N104 million as benefits of his former position.

    This is contained in a petition to the House of Representatives.

    The petition reads, “On assumption of office as the DG of the Commission, Mr. Gwarzo immediately requested that the sum of N104,851,154.94 (One Hundred and Four Million, Eight Hundred and Fifty-One Thousand, One Hundred and Fifty-Four Naira and Ninety-Four Kobo), be paid to him as severance package for the cessation of his appointment as Executive Commissioner of the Commission.

    “The requested severance package in the sum of N104,851,154.94 (One Hundred and Four Million, Eight Hundred and Fifty-One Thousand, One Hundred and Fifty-Four Naira and Ninety-Four Kobo), was paid by the Commission into Mr. Gwarzo’s bank account, held with Guarantee Trust Bank PLC, with account number 0023868895.

    “Mr. Gwarzo received the above stated payment of a severance package in total disregard of the opinion of Mr. Frana Chukwuogo, the Acting Head of the Commission’s Legal Department, who clearly stated, in accordance with best practices, that a severance payment can only be paid to an employee of the Commission who has concluded his or her service and has completely disengaged from the Commission and not to an employee who has been promoted within the Commission and has not severed his employment with the Commission.”

    The petition said the SEC DG had been awarding contracts to his family members and friends, in violation of the rules guiding the commission.

    It said Gwarzo, his family members and certain directors of the commission were shareholders and directors in companies “used to carry out illegal transactions”

    Details of the “illegality” were stated, with at least four different accounts said to be traced to him.

    “Mr. Gwarzo and two of his relatives are Directors of Outbound Investment Ltd. (the Company). Since Mr. Gwarzo assumed office as DG of the Commission, the Company has been the sole supplier of diesel to the Commission.

    “The Company has also supplied air conditioners to the Lagos Zonal office of the Commission, as well as supplied fridge to the Commission. See Appendix BI attached hereto.

    “Payments made by the Commission to the Company for contracts executed can be verified from the Company’s bank account held with United Bank for Africa Plc, with account number 1016723428.

    “In addition, the Company has executed more contracts for the Commission which are not listed in Appendix B1, however these contracts can be verified from the Commission’s accounting records.

    “Mr. Gwarzo is the DG of the Commission is a Director of Medusa Investments Limited (the Company). The only other Director of the Company is Khadija Mustapher, who is also the wife of the DG of the Commission.

    “The Company has actively been used by Mr. Gwarzo, as a shell to carry out illegal transactions as is verifiable from the frequent transactions carried out through the Company’s bank account held with Guaranty Trust Bank Plc, with Account Number 0023953920. Mr. Gwarzo is a signatory to the said Company account. See Appendix B1 attached hereto.

    “Mr. Haris Haliru Gwarzo, the younger brother of the DG of the Commission, is the Sole proprietor of Northwind Environmental Services (the Company). The Company has been engaged by the Commission to clean the Commission’s Kano Zonal Office, since the inception of Mr. Gwarzo’s tenure as the DG of SEC. See Appendixes B1 and B4 attached hereto.

    “Payments made by the Commission to the Company for contracts executed, can be verified from the Company’s bank account with Diamond Bank Plc, with Account Number 0095179297.”

  • Shares’ suspension: Operators urge SEC, Oando to settle out-of-court

    Some capital market operators on Thursday urged the Securities and Exchange Commission (SEC) and Oando Nigeria to settle the dispute over the latter’s shares suspension out-of-court.

    They told the News Agency of Nigeria (NAN) in Lagos that further impasse over the issue in the public could dampen public interest in the nation’s capital market.

    Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., Lagos, said that it was wrong for the two to fight in public.

    Omordion said that the two parties should have gone to the Investment and Securities Tribunal (IST) to resolve the dispute.

    He said that the amount quoted by the commission for forensic audit of Oando should be resolved in the interest of shareholders.

    Prof. Sheriffdeen Tella of the Department of Economics, Olabisi Onabanjo University, Ago-Iwoye, Ogun, said that the issue should be handled with utmost care.

    Tella said that: “In all markets are people or members who are out to play games.

    “That is why there are inspectors, coordinators and regulators which is the role being played by SEC in the capital market,” he said.

    Tella said that what was important, however, was that the issue should be resolved amicably and not to erode investors’ confidence.

    NAN reports that SEC, on Oct. 18, directed the Nigerian Stock Exchange (NSE) to place the shares of Oando on technical suspension effective from Oct. 20 pending the outcome of a forensic audit of Oando.

    The directive was due to two petitions by one Alhaji Dahiru Barau Mangal and Ansbury Incorporated over breach of the provisions of the Investments & Securities Act 2007.

    SEC said that the company also breached SEC Code of Corporate Governance for Public Companies and suspected insider dealings and discrepancies in the shareholding structure of Oando.

    Oando, however, on Oct. 23, obtained an interim order from a Federal High Court restraining NSE from suspending trading on its shares.

    The order also restrained SEC from conducting any forensic audit into the company’s affairs, pending the hearing and determination of the matter.

    ‘’We are of the view that the SEC’s directives are illegal, invalid and calculated to prejudice the business of the company,” Oando said in a statement.

  • Shares suspension: SEC’s directives illegal, aimed at ruining our business – Oando

    Oando Plc has condemned the decision of the Securities and Exchange Commission (SEC) to fully suspend trading on its shares on the floor of the Nigeria Stock Exchange, NSE.

    The company described the action as illegal, invalid and calculated to ‘prejudice’ its business.

    TheNewsGuru.com reports that SEC, on October 18, 2017 suspended trading in the shares of Oando and ordered a forensic audit into the affairs of the company following allegations of infractions filed against the firm by Ansbury Inc. and Alhaji Dahiru Mangal.

    In two separate statements issued on Tuesday, Oando said: “We are of the view that the SEC’s directives are illegal, invalid and calculated to prejudice the business of the company. The company, being dissatisfied with the most recent actions taken by the SEC and to safeguard the interests of the company and its shareholders, immediately took steps to file an action with the Federal High Court (FHC) against the SEC and the Nigerian Stock Exchange (NSE).”

    Oando obtained a court order to halt the suspension of trading in its shares and a forensic audit planned by SEC.

    Confirming the development, Ayotola Jagun, Chief Compliance Officer and Company Secretary, in a statement, said: “ The NSE and SEC were served with the enrolled court order today Tuesday, October 24, 2017 after the technical suspension was carried out by the NSE on Monday, October 23, 2017. “In our view both the NSE and the SEC are legally obliged to comply with the interim orders pending the substantive determination of the suit.”

    The oil firm also expressed disagreement with SEC’s pronouncements on the suspension of trading in its shares and the forensic audit, noting that none of the allegations of infractions levelled by the regulator against the company warrants a forensic audit on the institution’s affair or full or technical suspension of trading in the company’s shares on the NSE.

    Oando maintained that the SEC has not presented a strong case to support the engagement of a forensic auditor to audit the affairs of the company.

    Stating reasons for the disapproval, Oando said the SEC requesting a forensic audit in order to investigate whether its findings are true is a clear contradiction from the norm.

    “How did the SEC arrive at its findings if it cannot be sure of the veracity of those findings, and more importantly how did it ascribe the appropriate level of weight to be given to those findings, enough to warrant an immediate suspension followed by a technical suspension of the shares of the company, especially if those findings are still mere allegations at this point, as the commission has clearly communicated? ” the company asked.

    Oando stated clearly that the commission, in a letter, informed the company informed Oando that the N160 million cost of the forensic audit will be borne by the Company, to which Oando responded by saying that this must be an error in light of all its submissions to date, and not the best use of shareholder funds at this time.

    The company noted that in the letter sent by the SEC, both petitioners, Alhaji Mangal and Ansbury Inc, were copied, lamented that it is unheard of and prejudicial for petitioners to be copied on correspondence to the investigated party on findings yet to be concluded.

    “It is unclear how the SEC will respond to the allegations against it on the basis of bias, but one thing is evident from the press statement issued by the company, Oando has taken a different and bold stance to challenge the commission.”

    According to the statement, the oil firm on Monday, October 23, 2017 obtained an ex-parte order from the FHC granting an interim injunction, through an order restraining the NSE from effecting the directive of the SEC to implement a technical suspension of the shares of the company, and an order restraining the SEC from conducting any forensic audit into the company’s affairs pending the hearing and determination of the matter.

    “An Oando source advised that the company’s reasons for taking this stance against the commission is the clear bias that has been shown towards the petitioners and the mismanagement of the investigation from inception.

    “Firstly, there is a fact that the SEC’s investigation of a public-traded company is public knowledge; a fact that has had a negative impact on the company’s share and enterprise value, and led to some of the company’s shareholders questioning who the SEC is really protecting. The source went on to say that there have been four media leaks till date, with sources indicating that the leaks have emanated from the SEC.”

    Oando also raised questions as to why the commission investigated a petition brought by an indirect shareholder (Ansbury Inc.) domiciled outside Nigeria, in a jurisdiction outside the SEC’s purview and one currently in arbitration court in the UK, when the commission’s complaints management framework says it shall not consider any matter which is currently in arbitration.

    In a recent letter to Oando, the SEC re-categorised the petitioner as a “whistle blower”, contrary to its former position as a “shareholder”, which according to Oando, shows a clear bias as it suggests the commission re-categorised the petitioner’s position to ensure it is able to carry on investigating the petitions.

    The oil company explained that in its statement, it highlights letters sent by its chairman, Oba M. A. Gbadebo, to the Director General of the SEC, Mounir Gwarzo, alleging bias and lack of due process in the way and manner in which the SEC has conducted the investigation.

  • SEC suspends sale of Oando shares

    Sequel to alleged discrepancies in its operations and investigation of petitions by shareholders, the Securities and Exchange Commission, SEC, on Wednesday ordered full suspension of the trading of shares of Oando Plc for two days.

    The commission also directed that effective from Friday, October 20, the Nigerian Stock Exchange should implement a technical suspension of the shares of the company.

    SEC in a notice posted on its website on Wednesday morning said it took the decision after it received two petitions from Dahiru Mangal and Ansbury Incorporated.

    The Commission explained that it carried out a comprehensive review of the petitions and discovered issues of breach of the provisions of the Investments & Securities Act 2007, breach of the SEC Code of Corporate Governance for Public Companies, suspected insider dealing, related party transactions not conducted at arm’s length, discrepancies in the shareholding structure of Oando Plc. Among other discrepancies.

    “The Commission’s primary role as apex regulator of the Nigerian Capital Market is to regulate the market and protect the investing public,” it said.

    “The Commission notes that the above findings are weighty and therefore needs to be further investigated. After due consideration, the Commission believes that it is necessary to conduct a forensic audit into the affairs of Oando Plc.

    “This is pursuant to the statutory duties of the Commission as provided in section 13(k), (n), (r) and (aa) of the ISA 2017.”

    According to SEC, to ensure the independence and transparency of the audit exercise, the forensic audit shall be conducted by a consortium of experts made up of auditors, lawyers, stockbrokers and Registrars.

    “To further ensure that the interest of all shareholders of Oando Plc are preserved during the course of the exercise, the Commission directed the Nigerian Stock Exchange to place the shares of Oando Plc on technical suspension,” it said.

    The commission, however, noted that in view of the fact that it is not technologically feasible for the Exchange to effect a technical suspension except after 48 hours, it has directed the Nigerian Stock Exchange to implement a full suspension in the trading of the shares of Oando Plc, effective for 48 hours from Wednesday to Friday 20.

     

    Details later…

  • Quoted companies to save N1 billion from printing of annual reports – SEC

    Quoted companies to save N1 billion from printing of annual reports – SEC

    The Securities and Exchange Commission, SEC, on Wednesday said quoted companies would save one billion naira from the printing and dispatch of annual reports to shareholders.

    Mounir Gwarzo, the SEC Director-General, made the disclosure at the 2017 second post-Capital Market Committee (CMC) news conference in Lagos.

    Mr. Gwarzo said that the commission was perfecting arrangements through a pilot scheme that would ensure electronic circulation of annual reports to shareholders to save cost.

    He said that quoted companies would save between N500 million and N1 billion from printing and dispatch of hard copies of annual reports to the shareholders.

    The SEC director-general said that CMC had reviewed the issue in line with economic realities and decided to float a pilot scheme for electronic distribution of annual reports to save cost.

    He said that this would also ensure enhanced dividend payment in the market.

    Mr. Gwarzo said that companies’ secretaries had been mandated to dispatch hard copies of annual reports during the pilot scheme to shareholders associations’ offices.

    The director-general said that 98 per cent of shareholders don’t get dispatched copies of annual reports before the annual general meetings.

    “We have been doing something for the past 50 years which is not helping the companies or even investors,” he said.

    Mr. Gwarzo said that the market would review the pilot scheme in first quarter of 2018 and address identified loopholes before deciding on total stoppage of printing of annual reports.

    He said that total e-dividend registrants in the market as of July stood at 2.1 million out of total unique investors by account stood at 838,671, while total unique investors by Bank Verification Number was 433,164.

    (NAN)