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A group of shareholders of Oando yesterday insisted that the embattled company’s management team led by its group chief executive, Mr Wale Tinubu need to resign.


President of the Trusted Shareholders’ Association of Nigeria (TSAN), Alhaji Muktar Muktar, mentioned the get in touch with on Tinubu and his group to resign has develop into imperative to save the firm from collapse.


Mukhtar also took a swipe at the Securities and Exchange Commission (SEC) for not responding appropriately to shareholders’ demand in respect of alleged infractions in the enterprise.


According to Mukhtar, "Regulators have not performed enough to shield shareholders in the complete Oando saga."


When speaking in Lagos on Wednesday with newsmen, Mukhtar mentioned, "Ernst & Young, the duly appointed independent auditors to Oando, having scrutinised the accounts of the corporation came up with a damning report that states in clear terms that the liabilities of the business have surpassed its assets by more than N200 billion. The auditors additional declared that there are significant concerns on the continuity of the business. Based on this report, the management of Oando need to have been sacked and prosecuted, but nothing was done. This can't come about in the US, UK, Europe and even Asia."


He additional mentioned that it is shameful that though the organization has been unable to pay dividends for the previous 4 years, the executives have been travelling about in private jets and living significant at the expense of shareholders.


"Similarly, the management has continued to raise the remuneration of directors and board members when the organization is left to die. This is a clear case of robbing Peter to spend Paul," the TSAN President said.


"In other nations, what the regulator will do initial of all if there are evidences or signs of infractions in any business, the management of the firm in question will be sacked. I don’t know why Oando management board is nonetheless there. When some of these issues occurred in some banks when Sanusi Lamido Sanusi was the Central bank Governor, he sacked the management boards of all the banks that were culpable. Even not too long ago, the Central Bank of Nigeria in physical exercise of its regulatory powers, sacked the management and Board of Skye Bank in order to save the bank from collapse. SEC should have similarly acted in the Oando matter," he said.


He stated fresh hands and fresh concepts are necessary to redirect the affairs of Oando and save it from hemorrhaging.


"It is worrisome that the management running the affairs of Oando has been there for 19 years. That on its own supposed not to be so for a corporate organisation. It is higher time they left the Board, specially now that there are disturbing challenges regarding the affairs of the enterprise," he stated.


Final month, SEC placed the shares of the embattled company on technical suspension till additional notice, following petitions from two of the company’s majority shareholders, Alhaji Dahiru Mangal and Ansbury Incorporated more than alleged ‘insider dealings’ and ‘manipulation of the company’s shareholding structure’ in breach of the Investments & Securities Act 2007 and the SEC Code of Corporate Governance for Public Providers. The Johannesburg Stock Exchange (JSE) also placed Oando’s shares on suspension.


There have been series of protests against the organization by various shareholders’ groups in a variety of parts of the nation.


Oando’s monetary statement for the year ended December 31, 2016 presented by auditing firm of Ernst & Young was described as fairly damning. According to SEC, the allegations against the firm have been sufficiently "weighty" to deserve investigation in order to preserve all shareholders’ interest. The statement appeared to have confirmed the fears of the concerned shareholders, as particulars established the material uncertainty of the business as a going concern. Apart from a extensive loss for the year of N33.9 billion, against N56.6 billion in 2015, the statement said the company’s existing asset exceeded current liabilities by about N14.six billion (N32.8billion net present liability in 2015).