The Oando forensic audit is delayed

The delay of the Nigerian oil and gas company Oando plc's judicial audit by the Securities and Exchange Commission, SEC, is caused by "payment to auditors and other logistical problems," PREMIUM TIMES has learned.

A senior SEC official told PREMIUM TIMES on Tuesday that the regulator was working to open the audit after the holidays, in 2018.The source, who spoke under strict conditions of anonymity, also referred to some of the challenges faced by the organization in the area of ​​logistics and payments to be made to external auditors.On December 5, the SEC informed Nigerians that the judicial audit of the company would begin as of the next day of notification. 

But PREMIUM TIMES reported Monday that two weeks after the announcement, the regulator had not started the audit yet ."You know they (external auditors) are from the private sector and this exercise also requires money."  There may be some concerns about the payment because the auditors would like to have their payment in full. They would even want 50% in advance because of the fear of a change of leadership, ". "So SEC is working on the plans and more likely to start after the holiday periods." The source also assured Nigerians that the regulator would not compromise its role in ensuring mental health in the market, adding that the SEC had no mandate but to clean the system. "We have no other interest in this case, we are regulators, as (a) arbitrator, and our interest is to regulate the market.I can assure you that the audit will be done," said the source. Oando had been in crisis following the technical suspension of his shares by the Nigerian Stock Exchange, NSE. The NSE said it acted on the SEC's directive, which in turn said it received petitions from company stakeholders containing allegations of serious misconduct against management.

The SEC later said it would conduct a judicial audit in the oil company's affairs.

In a statement released on Sunday, Oando said he had not yet been contacted by listeners sent by the SEC. He also stated that he opposes the proposed judicial audit to protect the company against the SEC's actions under the direction of Mounir Gwarzo, who is currently under suspension. The statement, signed by its chief compliance officer, Ayotola Jagun, and the head of corporate communication, Alero Balogun, said there is no basis for instituting a legal audit of the company by the SEC. The company said it would continue its legal battle against the SEC over alleged findings and sanctions following an investigation into the oil company. The oil company has acknowledged the appointment of Abdul Zubair as acting director general of the SEC, saying it would "establish a new and lasting relationship". Efforts to reach Oando's spokeswoman, Ms. Balogun, were unsuccessful on Tuesday, as she failed to respond to repeated calls placed at her known number.