- Oando Delays Financial Results as FRC Scrutinises Books
Oando Plc has said there will be a delay in the release of its financial results for the 12 months ended December 31, 2017 as the Financial Reporting Council of Nigeria has indicated interest in undertaking a more detailed review of the company’s audited financial statements.
According to Oando, the show of interest is part of the FRCN statutory review due to the issues raised by the recent investigation of the company by the Securities and Exchange Commission.
While informing its shareholders and key stakeholders in a letter, the oil firm said it envisaged that the FRCN’s review might take longer than originally anticipated.
Oando said, “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. Oando Plc apologises for any inconvenience caused and will update the market in due course.”
The development, Oando noted, was expected 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.
In October 2017, 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 SEC on the forensic audit.
Oando, in a statement, said for three consecutive quarters it had released its results on time and posted strong revenues and profits, despite a challenging environment.
The firm recently reached a peace accord with one of the shareholders who petitioned SEC, Alhaji Dahiru Mangal with the Emir of Kano, Sanusi Lamido, as the arbitrator.
In late January this year, SEC said its legal tussle with Oando with respect to the planned forensic audit of the oil firm and the suspension of its shares on the trading floor of the Nigerian Stock Exchange would continue.
The regulator said the case would go ahead despite the recent announcement by Oando Plc that it had reached a peace accord with a major shareholder (Mangal), following a rift between both parties over the running of the company.