FOLLOWING the directive
given to the Securities and
Exchange Commission (SEC)
by the House Committee on
Capital Market and Institutions
to investigate allegations of
financial impropriety and
mismanagement of Oando Plc,
shareholders of the company
across Nigeria have warned the
SEC against cover and actions
that will be inimical to them.
The shareholders’ who stated
this in a chat with newsmen in
Lagos, stressed that they will
use every legal means possible
to protect their investment in the
event that the SEC decides to give
the management of Oando a soft
landing.
The shareholders alleged that
some of their colleagues were
been used as conduit to reach
out to the SEC, calling on the
SEC to stay away from these
elements who parade themselves
as shareholders leaders.
Speaking on behalf of
his colleagues, National
Coordinator of Trusted
Shareholders Association,
Alhaji Muhktar Muhktar said
the duty of regulators in any
capital market is to protect the
interest of shareholders and not
management of corporations
who deliberately toy with
shareholders’ investment for
their selfish gains.
He warned that shareholders
from the northern part of the
country will picket the SEC if
urgent steps are not taken to
address their plight.
According to him, “We have
it on god authority that some
people who parade themselves
as shareholders are trying to
influence the decision of the
SEC as regards our petition to
the national assembly on the
mismanagement of our company
Oando Plc.
“We will not take it. They annual
report is there for everybody to
see. 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
obligations financial. The group
has accumulated losses of over
N159 billion in its balance sheet
as at 2016 year end, “he said.
On his part, President of
Renaissance Shareholders
Association, Ambassador
Olufemi Timothy alleged that
the management of Oando is
currently selling critical assets of
the company.
He therefore called on SEC
to do what is needful to restore
investors confidence in the
capital market.
“Management had been selling
assets of the company, especially
money-spinning assets such
as downstream (Marketing)
businesses without meaningful
improvement in debts situation.
It is planning to sell its share
in OER which unfortunately
is the last asset belonging to
the company. We note that all
actions were not enough to fully
repay the outstanding debts.
Management closed the year
2016 with consistent loss of over
N768 billion; significantly worse
than the year-end 2015.
“The net loss for the year
from continuing operations in
2016 amounts to N25.8billion as
reported in the annual audited
financial statement. We wish
that you use your good offices,
as a matter of urgency to save
our investment in Oando Plc
by looking into these matters,
and cause an action to intervene
in Oando Plc by removing the
present management to allow
for proper investigation of the
corporate governance abuses
and financial mismanagement as
noticed in the published full year
audited financial statement.
“We believe in the interest
of fairness, justice and equity,
the CEO, Mr. Wale Tinubu
must vacate his seat to allow
for proper investigation of all
these allegations, corporate
governance abuse and
financial mismanagement. An
independent new management
must step in to save our
investment in the interest of the
integrity of the capital market
and investor’s confidence, “he

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said.


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