Some shareholders of Oando Plc have accused the Securities and Exchange Commission (SEC) of betrayal accusing the regulator of culpable in the leakage of the petitions filed by some shareholders of the company over shareholding structure. They added that the commission’s initial silence on the matter has impacted negatively on the share value of the company.
Speaking on the issue, a shareholder, who does not want his name mentioned, said SEC’s handling of the matter and its seeming inaction since the news broke have endangered shareholders’ funds. He said, “By global best practice, the SEC should have commented on the enquiry early enough, but they allowed the information spread in a manner that has adversely affected the value of Oando’s shares and by extension shareholders funds.”
Another shareholder, said “if indeed there was any merit in the petition, SEC should have addressed the issues raised expeditiously and comprehensively, and not allow the aggrieved parties engage in sensational media campaign that has endangered the value of the company’s shares. SEC’s responsibility is to protect shareholders of a quoted company. SEC’s lethargic disposition to this issue has been less than noble. Merely writing a letter to the management of Oando as we learnt they have done without using the media to assure shareholders since the matter has been brought to the media space is unfortunate to say the least.”
Abuja based investment analyst, Mr. Olusegun Olusola, said poor handling of the issue by SEC has cost Oando over N25 billion within six days, putting shareholders funds at risk. Olusola said “If SEC does not properly lay this matter to rest, it may cause further panic in the market and further expose shareholders’ funds to unnecessary risks.” He added that SEC needs to intervene and adopt all measures to protect interest of over 270,000 shareholders of Oando Plc or the integrity of the SEC is at stake.
“This will make investors question the regulatory ability of the commission which will adversely affect investors’ confidence in SEC and by extension the capital market,” he said.
