Over 100 shareholders of the troubled Oando Plc have written a petition to the National Assembly alleging corporate governance abuse, mismanagement

The petition, addressed to the Chairman, House Committee on Capital Market and Institutions, was signed by the 100 aggrieved  shareholders with a demand that the management of the beleaguered company be sacked and made to account for their alleged misdeeds.

 This is just as shareholder groups across Northern Nigeria held a mass protest in Asokoro area calling on regulators to protect the interest of shareholders and save Oando from collapse.

Speaking on behalf of his colleagues,

the National Coordinator of Trusted Shareholders  Association, Alhaji Mukhtar Mukhtar, who led the protest, said the company’s external auditors report on page 64 of the 2016 annual report is enough ground for relevant authorities to act.

Presenting the petiton to the Chairman of the House Committee, Honourable Tajudeen Yusuf,  through his deputy Hon. Tony Nwuta; leader of the 100 shareholders, Ambassador Olufemi Timothy decried the failure by the regulators to act in the interest of

shareholders.

The petition, which was made available to newsmen reads: “We are compelled by the interest of our investments in Oando Plc to write to you for your intervention in the corporate governance challenges and

allegation of gross mismanagement of resources in Oando Plc.

“We have observed for three good years

 now that the financial operations of Oando Plc was of worrisome critical matters that affect our investment. “No dividend was paid since 2013 financial year. Critical financial management concern on our investment areas follows: “External

 auditors of Oando Plc reported strong doubtful going concern  of the group annual financial statement.”

The  group has negative working capital of over N263billion with current liabilities exceeding current assets.”

 The petition further stated that the management of Oando was unable to service its obligations financial. “The group has accumulated losses of over N159 billion in its balance sheet  as at 2016 year end. “The claim of creditors is higher than the owners, shareholders equity, meaning that  the  group could be liquidated by the creditors anytime if urgent action is not taken.

“With accumulated losses of over N159 billion, shareholders have  not get a dime as cash dividend. No hope of redeeming these  reserved losses. “Court cases as

projected by the management may take claims of over N608  billion which is far greater than the assets of the entire group, meaning that the group is at a very high risk of  liquidation if the court cases against the company  succeeds. “Cost of litigations is very high.  Litigation has damaging consequence on our company’s reputational risk under the current management,” the petitioners said.

 They also accused the Management of Oando Plc of increasing entitlements and remunerations of directors and top managent staff despite the company’s precarious  financial condition.

 The company’s managers, the shareholders further alleged, have been

 disposing of the company’s assets to service its huge debt. “Management had been selling  assets of the company, especially money-spinning assets such

as downstream (Marketing) businesses without meaningful improvement in debts situation. “It is planning to sell its share in OER which unfortunately is the

last asset belonging to the company.

“We note that all actions were not enough to fully repay the outstanding debts.”Management closed the year 2016 with consistent loss of over N768 billion;

 significantly worse than the year-end

2015. “The net loss for the year from

continuing operations in 2016 amounts to N25.8billion as reported in the annual audited financial  statement.

“We wish that you use your good offices, as a matter of urgency to save our investment in Oando Plc by looking into these matters, and cause an action to intervene in Oando Plc by removing the present management to allow for proper investigation of the corporate governance abuses and financial mismanagement as noticed in the published full year audited financial

 statement.

“Sir, we believe in the interest of fairness, justice and equity, the CEO, Mr. Wale Tinubu

must vacate his seat to allow for proper investigation of all these allegations, corporate governance abuse and

financial mismanagement. An independent new management must step in to save our investment in the interest of the integrity of the capital market and investor’s

confidence.”

The Committee, which had  earlier met with the Director General of the Securities and

> Exchange Commission (SEC), Mounir Gwarzo, assured the aggrieved shareholders that the committee would look into their complaints. “I assure you that we will look thoroughly into your complaint and ensure that all shareholders are duly protected,” Nwuta said.

 The Committee gave the SEC Director-General two weeks to respond to the crisis rocking Oando.