Oando Nigeria PLC is under a comprehensive investigation by the Securities and Exchange Commission (SEC) according to competent sources.
It is learnt that the Securities Commission conducted several weeks of investigations, upon which the Board and Management of Oando Nigeria have been written a formal letter to explain matters relating to observed malpractices in the company’s financial statements.
The sources add that SEC’s investigations were kicked-off following petitions filed by some foreign investors in Oando Nigeria PLC, in relation shareholding structure following the 1.65 billion Dollars cash that Oando paid in June 2014 to acquire the oil production assets of Conoco-Phillips in Nigeria.
Three years ago, Oando Nigeria used its subsidiary – Oando Energy resources to buy Conoco-Philips oil assets in the Niger Delta, the first of such landmark upstream sector acquisition by any indigenous oil firm.
The Conoco-Phillips acquisition was followed by some shareholding restructuring announced by Oando Nigeria.
Oando is listed on both the Nigeria and South Africa Stock Exchanges with shares of its subsidiary – Oando energy resources listed on the Toronto Stock Exchange but delisted in 2016.
SEC will decide on the next line of action on Oando Nigeria depending on the response, the regulator secures from the oil company.