Following the suspension of the shares of Oando Plc on the floor of the Nigerian Stock Exchange by the Securities and Exchange Commission, some shareholders of the oil firm have praised the intervention of the apex regulator in controlling the prices of the company’s stock.
Meanwhile, The Point had reported the uneasy calm that pervaded the oil-servicing company, as aggrieved investors in the Nigerian capital market had accused leaders of some shareholders’ groups of receiving dollar bribes from the management of the company, to avoid criticising its financial performance at the Annual General Meeting in Uyo, Akwa Ibom State.
The aggrieved investors staged a protest in Ibadan, the Oyo State capital, and Abuja, demanding the sack of the Managing Director of the company, Mr. Wale Tinubu, following what they called “the poor financial situation of Oando.”
They then told The Point that the leaders of a few groups of shareholders collected gifts of $5,000 each after their flight and accommodation had been taken care of by the company, “to seal their lips.”
Some of the investors, who spoke to The Point in separate interviews, said SEC was now awake to its responsibilities in the emerging market.
To them, the suspension, which was done to prevent the price of the shares from crashing to N0.50k (minimum value of shares in the market), is a welcome development that would allow the regulator to carry out a forensic audit on the firm and disclose to the investing public.
One of the shareholders, Mr. Bayo Aina, said the intervention would prevent a further drop in the value of the shares of the company.
According to him, reports of further investigations should be published in national dailies to inform the public about the true state of the company. He said the suspension should not be lifted till a new management was appointed to return the company to profitability.
“The investigations should be done, considering a proper corporate governance, transparency and accountability with the involvement of the House Committee on Capital market, representatives of minority shareholders and other market operators,” Aina said.
The National President, Constance Shareholders Association of Nigeria, Mr. Shehu Mikail, wanted SEC to ensure the audit is carried out by a first class auditing firm, adding that there should not be any interference by the management of the company.
He said, “Everything should be done on the basis of proper code of governance that would give confidence to all the stakeholders and shareholders so that we can heave a sigh of relief. We hope SEC will not let us down.”
