Energy

Reconciling with Volpi may raise ethical questions, group tells Oando

Published

8 years ago

May 17, 2018

A group of shareholders of Oando Plc has cautioned the management of the company against moves to reconcile with Ansbury Investments Incorporated, owned by Mr. Gabriele Volpi.

The group, Pacesetters Shareholders Association, Distinct Shareholders Association and Sage Shareholders, said their objection to the reconciliatory moves was based on an ongoing investigation of Volpi for alleged money laundering and tax evasion by Italian authorities.

According to media reports, the group revealed that the investigation which is being conducted by the Italian Economic and Financial Crimes Police also focuses on Volpi’s longtime associate, and popular Italian banker, Giampiero Fiorani.

It, however, advised Volpi to do the right thing by sorting every issue he has with the law before seeking to reconcile with Oando.

The shareholders further noted that reconciling Ausbury and Oando may raise fundamental ethical questions on Oando and cause the Italian anti-corruption police to beam its searchlight on Oando.

Trouble started with Oando when two of its shareholders Alhaji Dahiru Mangal and Ansbury Inc. on, October. 20, 2017 filed a petition alleging infractions and mismanagement against the management of Oando.

The Nigerian Stock Exchange (NSE), on the directive of the Securities and Exchange Commission (SEC), placed a suspension on the trading of shares of Oando.

This was followed with a forensic audit of the company but the suspension was lifted on April 12. Since the lifting of suspension on the shares of Oando Plc, it has recorded significant appreciation.

Besides, the company recorded a revenue of N497 billion for the year ended December 2017 compared to N455 billion reported for the year ended December 2016. This represents a 9.2% increase year on year.

Profit before tax for the company was N20.7 billion for the year ended December 2017, as against a loss before tax of N62.9 billion reported a year earlier.

Its share price currently trades at N7.20 on the floor of the Nigerian stock exchange. While its 1-year return dropped by 15.79%