The management of Oando Plc has said the company does not need a forensic audit ordered by the Securities Exchange Commission (SEC).
SEC had accused Oando of violating several laws and ordered an independent audit.
It could be recalled that the Nigerian Stock Exchange and Johannesburg Stock Exchange had suspended trading of the shares on the advice of SEC.
Chief compliance officer and Company secretary,Ayotola Jagun, said the company said it would make amends.
The company said, “Our 2016 Corporate Governance report filing dated January 31, 2017 contained an error which can be seen when compared to our previous filings, including the H2 2015 report sent to the SEC under cover dated August 31, 2016,”
“Both Oando’s Delegation of Authority Document and the Remuneration Policy, approved by the board of directors in October 2011, provide for the remuneration of all executive directors to be approved by the board upon the recommendation of the governance and nominations committee with input from the group chief executive.
“The company informed the SEC that the error in our 2016 filing would be rectified in subsequent filings.”
“Any investigation into whether or not there has been a breach of insider trading rules is a question of fact which would be better addressed through an inspection of trading records of the Exchange rather than through a forensic audit of the company,”.
“If Alhaji Mangal claims he holds more shares in the company than is stated in the register of members, then it is for him, directly, or through his brokers to seek a reconciliation of the register, providing evidence of the number of shares that he acquired in the company and when he acquired those shares.
“We do not see how this ‘discrepancy’ should therefore require a forensic audit to ascertain its veracity when the burden is on Alhaji Mangal to show that he acquired those shares.”