The Nigerian Stock Exchange, NSE, has commenced investigations into the circumstances surrounding the financial results of Oando Plc which caused upsets at the stock market last week.
In a statement last night NSE said it has invited Oando’s audit committee as well as its external auditors to commence the formal probe into the results saga.
According to the statement ‘’should The Exchange’s continuing review reveal that Oando committed other infractions, The Exchange will mete out appropriate sanctions pursuant to its Rules. It added, “the Exchange has reported the situation to the Securities and Exchange Commission and will involve other stakeholders, as appropriate”.
Annual results
Oando, an integrated oil and gas company listed on the Johannesburg and Nigeria stock markets released its much awaited audited annual results for 2014 previous Friday. The company reported a monumental post-tax loss of N183.9billion, the highest loss ever recorded by any NSE listed company.
The company attributed the massive loss to provisions made for the inability of its Joint Venture partners, JVs, to make payments for over-lifted oil, the currency devaluation which led to foreign exchange losses in its downstream division as well as impairment and write-downs on its upstream assets.
Nevertheless, stock market analysts say the inability of the company to efficiently manage shareholders’ fund as reflected in bloated administrative expenses, non-issuance of a loss warning and long delays in releasing the 2014 annual reports and first and second quarter 2015 results had also raised questions about regulatory compliance level as well as corporate governance practices.
OANDO Plc’s shares have since tumbled as a result of this development.
Meanwhile NSE said Oando had been sanctioned for violations of its post-listing obligations in accordance with applicable Rules of The Exchange.
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