Shareholders
of Oando Plc on Tuesday raised
concerns on how the Securities and Exchange Commission’s investigation has
impacted negatively on the activities of the company, from the reduction in
share price to eroding of both local and international investor confidence in
the company.
The
oil firm has lost N26 billion in market capitalisation within six months of the
SEC’s investigation into the affairs of the company. The shareholders also
flayed the recent public outcry by a group under the aegis of the Oando Shareholders Solidarity Group (OSSG).
The
Oando shareholders association made up of members across the country including
the Shareholders United Front Association and the National Coordinating
Committee of Shareholders Association also condemned a situation where a
particular group has decided to speak on behalf of the entire and shareholders.
According
to a statement by the firm, “Clement Ebitimi,
South-South Coordinator of OSSG had discredited the Company’s recent statement
on the SEC’s mishandling of the investigation by stating that he did not
believe that the current management of Oando Plc was protecting the interests
of shareholders and that all shareholders of the Company are angry, and
frustratingly tired of the management.
“Gbenga Idowu of the Shareholders United Front Association also
countered Mr. Clement’s statement by saying that another shareholder cannot
speak on behalf of all Oando shareholders especially when shareholders that
attended the most recent Company AGM showed their support and confidence in the
current management through their votes and voices.
“Mrs Oludewa Thorpe a member of the National Coordinating Committee
of Shareholders Association said ‘Having worked tirelessly to bring the Company
back from a loss position 2 years ago to 4 quarters of profitability, it is
evident that the management team is interested in truly turning the Company
around.’’
Furthermore,
it added; “The nature of the investigation, Oando had
said that within six months of the SEC investigation from July, the company
lost N26 billion in market capitalisation. The company like some of her
shareholders have also complained about continued media leaks, the SEC’s
silence in addressing these leaks and the negative impact on the company and
its shareholders.
“This concern was further reiterated by Mrs. Bisi Bakare, a
shareholder of the Company who at the Company’s 40th Annual General Meeting
(AGM) held in Uyo on September 11, 2017, advised that shareholders resolve
their disputes with the Company in private to avoid unnecessary sensationalism
which would, in turn, result in the loss of money for the Company and its
shareholders.”
At
this company’s yearly general meeting, there were protests by shareholders
asking for the management team to step down. Oando had in an official statement
indicated that these were not shareholders as they were given the opportunity
to enter the venue and raise their concerns with management and vote
accordingly, however, none were able to provide any shareholder identification
and so were not allowed entry.
An
Oando executive on the promise of anonymity noted that the shareholders are
sponsored personnel and individuals who are not shareholders of the company. “It is interesting that these purported shareholders never
use the available avenues to bring up and resolve their issues, every instance
they have called for management to step down has been in the public domain, to
get media attention and damage the brand. Is this what a real shareholder
does?’’ he said.
Oando
in several statements have disparaged the SEC’s handling of the investigation
on the grounds of bias and lack of due process; penalties that far outweigh the
alleged infractions and that there is no basis for the institution of a
forensic audit or technical suspension in the trading of the Company’s shares.
“If the proposed forensic audit does take place, and the SEC have
said it will commence in the New Year, then it is at a cost N160 million and
will be borne by the company which in effect means Oando shareholders. At a
time when the management team is trying to reduce overheads, pay off debt and
maintain profitability. The shareholders have questioned if this is the best
use of shareholders’ funds especially when there is no basis for the forensic
audit,” it
added. (GUARDIAN)
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