Oando loses appeal against SEC

The appeal court has refused to rule that the Securities Exchange Commission (SEC) lift the partial suspension placed on the shares of ) Oando Plc.

On Friday, the court threw out the suit filed by the oil company.

When contacted, Alero Balogun, Oando’s spokesperson, could not immediately comment on the issue but referred TheCable to a statement on the company’s website.

“On Friday, December 15 2017 the FHC dismissed the application for lack of subject matter jurisdiction. We have immediately filed an application at the Court of Appeal for an injunction pending the determination of our appeal,” the statement read in part.

“To date all actions taken by the company have been predicated on our belief of bias and a lack of due process and fairness in the way in which the SEC, under the leadership and direction of Mounir Gwarzo, had carried out this investigation.

“Despite our objections to the forensic audit, the company would like to reiterate that we recognize and respect the authority of the commission and in the spirit of cooperation, transparency and full disclosure, the company will comply with the directives of the commission whilst reserving our legal rights in this matter.”

The imbroglio started when SEC advised the Nigerian Stock Exchange and the Johannesburg Stock Exchange to suspend trading on Oando’s shares for some market infractions.

In a letter sent to Wale Tinubu, Oando chairman, SEC accused the company of declaring false profits, insider trading amongst other infractions.

At present, Oando’s shares are on technical suspension on the Nigerian Stock Exchange, which means the shares can be traded but the price will remain unchanged.

Oando had obtained a court suit to stop the audit and lift the suspension placed on their shares but Mohammed Aikawa, the presiding judge, said the court lacked the jurisdiction over the matter and advised Oando to take its case to the Investment and Securities Tribunal (IST).

“I hold that the subject matter of this issue falls within the exclusive jurisdiction of the Investment and Securities Tribunal (IST) and not this court.”

There had been reports that Mounir Gwarzo, SEC director general (now suspended), got the disciplinary action from Kemi Adeosun, minister of finance because he failed to halt the audit on Oando.

Adeosun has since denied the allegations.