The decision of Financial Reporting Council of Nigeria (FRC) to undertake a more detailed review of OandoPlc’s 2017 financial results has been attributed as the reason why Oando’s filling of their financials will be delayed.
Oando, in a statement, said: “The Financial Reporting Council of Nigeria (FRC) has indicated interest in undertaking a more detailed review of the Company’s Audited Financial Statements (AFS) as part of their statutory review due to the issues raised by the recent investigation of the Company by the Securities and Exchange Commission (SEC).
“We envisage that the FRCN’s review might take longer than originally anticipated. Therefore, the Company may not be able to file the accounts until the second week in May, the exact date of filing will be dependent on the turnaround time at the FRCN.”
The company said they know that this development was expected because of the ongoing SEC forensic audit of the company by the Securities and Exchange Commission (SEC).
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.
“For three consecutive quarters the company has released its results on time and posted strong revenues and profits, despite a challenging environment. 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, AlhajiDahiruMangal with the Emir of Kano, SanusiLamido 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 statement added.
SEC had last year ordered the suspension of trading on Oando shares due to petitions from DahiruMangal and Ansbury Incorporated, local and international investors respectively in the company. Moves had been made to resolve the issues with both parties and Mangal is believed to have reached some understanding with the company executives and board.
