30 March 2018, Sweetcrude, Lagos – Oando Plc’s board of directors has postponed the review meeting over the company’s disputed audited financial results.
In a statement by Chief Compliance Officer and Company Secretary, Ayotola Jagun, made available to SweetcrudeReports on Thursday, the company said the board meeting has been adjourned to April 10, 2018.
According to him, there is an ongoing review of the accounts by Oando’s management and local and international auditors before an approval of the accounts could be given.
However, according to the statement, the company still “hopes” to release the financial report in May as expected.
“This is to inform the public and our stakeholders that the Board of Directors of Oando Plc held a meeting on Tuesday, March 27 2018 to consider the 2017 Audited Financial Statements (the “Accounts”). The board meeting was adjourned to April 10, 2018 for approval of the Accounts due to ongoing Management reviews and consultations between our Auditors’ local and international offices. However, we still expect to meet the May 2018 deadline as earlier communicated to the market for the filing of the Accounts,”the statement by the company read.
The company’s 2017 financial report has been criticised for not portraying the true financial status of the company which leadership had been accused of mismanagement by some of its investors.
As at Wednesday, some investors under the umbrella of Trusted Shareholders’ Association, TSA, and the Proactive Shareholders Association of Nigeria, PSAN, in Abuja, had protested the delay in the commencement of the forensic audit of Oando by the Securities and Exchange Commission, SEC.
Earlier in the month, the Financial Reporting Council of Nigeria, FRCN, indicated interest in undertaking a more detailed review of the company’s audited financial statements.
Oando had explained that the FRCN’s move was part of its statutory review due to the issues raised by the recent investigation of the company by SEC.
Last year, two of Oando’s shareholders, one of who was Alhaji Dahiru Mangal, had alleged sharp practices by the management of the company, especially by its chairman, Wale Tinubu.
The statement further read: “We envisage that the FRCN’s review might take longer than originally anticipated. Therefore, the company may not be able to file the accounts until the second week in May, the exact date of filing will be dependent on the turnaround time at the FRCN.
“Oando Plc apologises for any inconvenience caused and will update the market in due course”.
The Emir of Kano, Emir Muhammadu Sanusi II, had in January, waded into the crisis, causing Oando to release a statement officially declaring Alhaji Mangal as a “substantial shareholder” in the company after a long battle.
The peace accord was said to have been mediated and concluded by Sanusi on January 7, 2018.
According to Oando, the move to settle the score with Alhaji Mangal was in accordance with the Companies and Allied Matters Act, Cap. C20 LFN 2004, CAMA, which states that “an individual or entity with direct/beneficial share ownership over 10% constitutes a substantial shareholder in the company”.
“The company has always encouraged oversight over its affairs by all shareholders. In the same vein, we have encouraged Alhaji Mangal to exercise such rights to enable him to gain a better understanding of the Company’s business development plans, initiatives and operations”, the statement had read.
The crisis had led to suspension of Oando’s shares from trading on both the floor of Nigerian Stock Exchange, NSE, and the Johannesburg Stock Exchange.
Although Oando had made the move to resolve matters with Alhaji Mangal, including announcing commencement of process to appoint him to its board of directors, SEC is yet to officially announce backing down from the case.
Oando has since appointed both Mr. Muntari Muhammed Zubairu to its board as Group Chief Corporate Services and Operations Officer, and Alhaji Bukar Aji as a Non-Executive Director.