SEC Probe: FRC To Undertake ‘Detailed Review’ Of Oando’s 2017 Audited Financials

The management of Oando Plc, on Thursday hinted the Nigerian Stock Exchange (NSE) that its audited result for the year ended December 31, 2017 may come later than the March 31, 2018 deadline to file the report.
A statement by Ayotola Jagun, Oando’s Chief Compliance Officer and Company Secretary said the result which could now come around second week in May follows a request by the Financial Reporting Council of Nigeria (FRCN) to undertaking a more detailed review of the company’s audited financial.
The review, Oando said is part of FRCN’s statutory review arising from “the issues raised by the recent investigation of the company by the Securities and
Exchange Commission (SEC).
The company therefore apologized “for any inconvenience caused and will update the market in due course.
In a press statement by Alero Balogun, its spokesperson some hours later, Oando said the development was not unexpected “because of the ongoing SEC forensic audit of the Company.
“The forensic audit was precipitated by alleged findings of the SEC, following an investigation into the Company which commenced in July 2017. You would recall that in October 2017, the SEC released the findings of the investigation and called for a technical suspension on the trading of Oando’s shares as well as a forensic audit into the affairs of the Company.
“Oando had initially disagreed to what it termed ‘steep penalties’, however, in December 2017, the company issued a statement on its website, saying it would fully cooperate with the SEC on the forensic audit.”
It is believed that the decision to fully cooperate with the SEC on the forensic audit has been received well by all stakeholders, amidst hope that this would satisfy displeased shareholders that the regulators are doing their job, and that Oando is indeed a complaint company with the interests of its shareholders at the heart of all its actions.
Following in the footsteps of the Company’s cooperation with the SEC, Oando recently reached a peace accord with one of the shareholders who petitioned the SEC, Alhaji Dahiru Mangal with the Emir of Kano, Muhammadu Sanusi II, as the arbitrator.
“It is pleasing to know that regardless of the forensic audit the Company has promised that on conclusion of the FRCN’s review of its accounts it will release its FYE 2017 results. Like the market we are hopeful that this delay doesn’t in any way affect the winning streak of the Company to enable it declare its fifth consecutive profit since FYE 2016,” the company added.