allAfrica.com: Nigeria: NSE Places Cadbury's Shares On Suspension (Page 1 of 1)

AS part of the sanction for allegedly doctoring its financial statement to the tune of N5 billion, the Nigerian Stock Exchange (NSE) yesterday, finally placed the shares of Cadbury Nigeria Plc on full suspension. The implication is that, trading has been suspended on the shares of the company until further notice.

Announcing the suspension of the company, the Assistant Director-General of the NSE, Mr. Musa Elakama disclosed that the NSE's decision to suspend the company came after the ruling of the Investment and Securities Tribunal (IST), which dismissed the application of Cadbury, and upheld the decision of the Securities and Exchange Commission (SEC) to mete out sanctions to the company.

He said, "We are imposing full suspension on Cadbury Nigeria Plc, following its financial misrepresentation. The reason for our decision is because of the ruling of the IST on the case. The ruling of the IST is binding on the NSE since it is court of competent jurisdiction on investment matters.

"It will be recalled that on May 7, SEC asked us to suspend the shares of Cadbury, we refused then because Cadbury went to court challenging the decision of SEC's Administrative Proceedings Committee (APC).

The IST finally dismissed Cadbury's application, so we decided to impose the suspension. The company remains suspended until further notice."

SEC had indicted and banned Mr. Bunmi Oni and Ayo Akadiri from occupying position of director in any quoted company on the Nigerian Stock Exchange (NSE) as a result of their involvement in the mis-statement of the financial account of Cadbury Nigeria Plc.

The commission also declared that the company's directors - Messrs Uduimo Itsueli, Bunmi Oni, Ayo Akadiri, J.S.T Bogunjoko, Abiodun Jaji, Andrew Baker, Christopher Okeke, Olatunde Falase, Raymond Ihyembe, Gabriel Onabote, Olusegun Oyewole, Matthew Shattock, Olusegun Aina, Akinbode Gbolahan and Tunde Egbeyemi- had been referred to the Economic and Financial Crimes Commission (EFCC) for further investigation and prosecution.

Besides, it penalised and reprimanded Akintola Williams Deloitte and Union Registrars for their involvement in the alleged mis-statement of Cadbury's result.

According to statement by SEC announcing various sanctions to culprits in the issue, "SEC in its judgment has imposed a fine on Cadbury Nigeria Plc. It is to pay a fine of one hundred thousand Naira (N100, 000.00) in the first instance and a penalty of five thousand Naira (N5, 000.00) per day from June 30, 2002 to December 14, 2006 amounting to N8.1 million within 21 days from the date of the decision (March 28, 2008) for filing with the Commission, financial statements that contained untrue/misleading statements; failing which trading on its shares will be suspended.

It further ordered that "Cadbury is to pay a fine of one hundred thousand Naira (N100, 000.00) in the first instance and a penalty of five thousand Naira (N5, 000.00) per day from August 24, 2005 to the date of the decision (March 28, 2008) within 21 days, for filing a Rights Circular for the N5 billion irredeemable convertible loan stock which contained false/misleading statements, failing which trading on its shares will be suspended."

"Pay a penalty of five thousand Naira (N5, 000.00) per day from June 30, 2002 to December 14, 2006 within 21 days from the date of the decision for failing to provide funds en-bloc for the payment of dividends to its shareholders despite the Commission's earlier directive."

According to SEC, "Messrs Bunmi Oni and Ayo Akadiri are banned from operating in the Nigerian capital market, being employed in the financial services sector and holding directorship positions in any public company in Nigeria ."

SEC also decided that "Messrs J.S.T. Bogunjoko, Abiodun Jaji, Andrew Baker and Christopher Okeke are suspended from operating in the Nigerian capital market, being employed in the financial services sector and holding directorship positions in any public company in Nigeria for a period of 5 years from the date of the decision."

Olusegun Aina, Akinbode Gbolahan and Tunde Egbeyemi were suspended from operating in the Nigerian capital market, being employed in the financial services sector and holding directorship positions in any public company in Nigeria for a period of three years from the date of the decision.

"Rt. Hon. Uduimo Itsueli, Messrs Olatunde Falase, Raymond Ihyembe, Gabriel Onabote, Olusegun Oyewole, Matthew Shattock, Thomas Ayorinde, Z.C. Enuwa and S.J. Balogun are suspended from operating in the Nigerian capital market, being employed in the financial services sector and holding directorship positions in any public company in Nigeria for a period of one year from the date of the decision," he said.

In the case of Akintola Williams, Deloitte, SEC said it had "ordered it to pay a fine of twenty million Naira (N20 million) within 21 days of the decision for its failure to handle the accounts of the company with high level of professional diligence failing which its registration with the Commission shall be cancelled.

It said Union Registrars Limited had been "Ordered to pay a penalty of five thousand Naira (N5, 000.00) per day from June 1, 2002 to June 31, 2006 within 21 days of the decision, failing which its registration with the Commission will be cancelled.

"Strongly reprimanded and warned to desist from engaging in acts that may affect the investing public's confidence in the capital market.

"Strongly advised to be more diligent in carrying out its assignments in capital market related issues."

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