Over 100 shareholders of the troubled Oando Plc have written a petition to the National Assembly alleging corporate governance abuse, mismanagement and gross misconduct.
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 petition 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 doubt on the going concern of the group based on the 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 financial obligations.
“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 gotten 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 management staff despite the company’s precarious financial condition.
