No controversy over lifting Oando ‘s technical suspension, says SEC

The Secuties and Exchange Commission ( SEC ) yesterday clarified
that there was no controversy over the lifting of the suspension on
trading in the shares of Oando Plc.

The SEC also explained why it directed the Nigerian Stock
Exchange ( NSE ) to lift the technical suspension placed on the
shares of Oando Plc.

There were reports that trading in the shares resumed on
Wednesday, halted and then resumed this leading to confusion among
capital market watchers.

Trading on Oando shares had been frozen for six months after SEC
ordered the suspension to probe alleged insider trading and the oil
company’s shareholding structure.

However, the capital market regulator said it’s directive for
trading to resume in Oando shares remained sacrosanct.

Speaking to journalists on the development yesterday in Abuja,
the Acting Director-General, SEC, Dr Abdul Zubair said that the
suspension on the company’s shares was done in the interest of the
market.

He said before the decision was reached, the management of Oando
as well as the umbrella body of all shareholders’ union in the
company visited the commission and made written submissions for the
suspension to lifted.

It said that the decision to lift the suspension was sequel to
the withdrawal of all litigations by the company and shareholders
challenging the suspension. The suspension of shares from trading
on the floor of the NSE was usually for a short period, that of
Oando extended beyond the normal period owing to litigations
instituted by the shareholders and Oando.

According to him, “as a result of the court cases, the
commission as a law abiding agency of government was constrained to
continue with the forensic audit or lift the suspension. However
with the withdrawal of the suit in February, the forensic audit has
resumed while the technical suspension has been lifted.”

the independent forensic audit by Deloitte Dr Abdul Zubair said
is ongoing and the preliminary result is expected any time soon.
The presentation of the preliminary findings of Deloitte he said,
will not be the end of the forensic audit as Deloitte is required
to be independent and unlimited by time to carry out a thorough
audit.

“The shares of Oando Plc were placed on technical suspension in
October 2017 upon the announcement of forensic audit which aimed to
protect investors as a short term measure.

“Suspensions are typically intended for a short period to ensure
market stability and thereafter lifted to allow market dictates.
However, the suspension of the shares of Oando plc was prolonged
due to several litigations by Oando and other shareholders
contesting the propriety of the forensic audit and technical
suspension. All “Litigations have now been withdrawn,

Zubair said contrary to speculations that there was a
disagreement between SEC and the NSE in the process of lifting the
suspension, the commission is not in dispute with any agency and
that the Commission was aware that its letter directing the
“immediate” lifting of suspension was subject to the 48 hours rules
of the capital market.

The Secuties and Exchange Commission ( SEC ) yesterday clarified
that there was no controversy over the lifting of the suspension on
trading in the shares of Oando Plc.

The SEC also explained why it directed the Nigerian Stock
Exchange ( NSE ) to lift the technical suspension placed on the
shares of Oando Plc.

There were reports that trading in the shares resumed on
Wednesday, halted and then resumed this leading to confusion among
capital market watchers.

Trading on Oando shares had been frozen for six months after SEC
ordered the suspension to probe alleged insider trading and the oil
company’s shareholding structure.

However, the capital market regulator said it’s directive for
trading to resume in Oando shares remained sacrosanct.

Speaking to journalists on the development yesterday in Abuja,
the Acting Director-General, SEC, Dr Abdul Zubair said that the
suspension on the company’s shares was done in the interest of the
market.

He said before the decision was reached, the management of Oando
as well as the umbrella body of all shareholders’ union in the
company visited the commission and made written submissions for the
suspension to lifted.

It said that the decision to lift the suspension was sequel to
the withdrawal of all litigations by the company and shareholders
challenging the suspension. The suspension of shares from trading
on the floor of the NSE was usually for a short period, that of
Oando extended beyond the normal period owing to litigations
instituted by the shareholders and Oando.

According to him, “as a result of the court cases, the
commission as a law abiding agency of government was constrained to
continue with the forensic audit or lift the suspension. However
with the withdrawal of the suit in February, the forensic audit has
resumed while the technical suspension has been lifted.”

the independent forensic audit by Deloitte Dr Abdul Zubair said
is ongoing and the preliminary result is expected any time soon.
The presentation of the preliminary findings of Deloitte he said,
will not be the end of the forensic audit as Deloitte is required
to be independent and unlimited by time to carry out a thorough
audit.

“The shares of Oando Plc were placed on technical suspension in
October 2017 upon the announcement of forensic audit which aimed to
protect investors as a short term measure.

“Suspensions are typically intended for a short period to ensure
market stability and thereafter lifted to allow market dictates.
However, the suspension of the shares of Oando plc was prolonged
due to several litigations by Oando and other shareholders
contesting the propriety of the forensic audit and technical
suspension. All “Litigations have now been withdrawn,

Zubair said contrary to speculations that there was a
disagreement between SEC and the NSE in the process of lifting the
suspension, the commission is not in dispute with any agency and
that the Commission was aware that its letter directing the
“immediate” lifting of suspension was subject to the 48 hours rules
of the capital market.