Economic Confidential, April 9, 2008

BUSINESS

Cadbury Scandal: Akintola William Penalised, Bunmi Oni Banned

Finally the big hammer has fallen on the major players in the accounting scandal involving the Cadbury Nigeria PLC few years ago. The punishment for culpability include payments of fine, ban from operating in the Nigerian capital market and suspension from holding directorship positions in any public company in Nigeria.

In a document obtained by the Economic Confidential, the punishments were the outcome of Administrative Proceedings Committee (APC) of the Securities and Exchange Commission (SEC) which had invited those involved to appear before it to explain why sanctions should not be imposed on them for violating the provisions of the Investments and Securities Act 1999, the SEC Rules and Regulations 2000 (as amended), Code of Conduct for Capital Market Operators and their Employees and the Code of Corporate Governance in Nigeria.

Those invited included the directors, some management staff of the company, its external auditor, Akintola Williams Delloite (AWD) and the Registrars, Union Registrars Limited.

In a statement from SEC, Cadbury Nigeria Plc is to pay fines running to millions for filing with the SEC financial statements that contained untrue/misleading statements and for failing to provide funds en-bloc for the payment of dividends to its shareholders despite the Commission’s earlier directive.

The Company’s former managing director, Bunmi Oni and Finance director, Ayo Akadiri who are found by the Administrative Proceedings Committee (APC) of the Security and Exchange Commission (SEC) as masterminds in the saga have been 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.

Those 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 are The Messrs J.S.T. Bogunjoko, Abiodun Jaji, Andrew Baker and Christopher Okeke. Those suspended for three years are Olusegun Aina, Akinbode Gbolahan and Tunde Egbeyemi.

Others suspended for one year from operating in the capital market and holding directorship positions are Rt. Hon. Uduimo Itsueli, Messrs Olatunde Falase, Raymond Ihyembe, Gabriel Onabote, Olusegun Oyewole, Matthew Shattock, Thomas Ayorinde, Z.C. Enuwa and S.J. Balogun.

In fact in addition to those sanction most of them have been refereed to the Economic the Economic and Financial Crimes Commission (EFCC) for further investigation and prosecution.

The popular accounting firm in Nigeria Akintola Williams Deloitte is ordered to pay a fine of twenty (20) million Naira 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. The firm is also strongly reprimanded and warned to desist from engaging in acts that may affect the investing public’s confidence in the capital market.

Apart from being advised to be more diligent in carrying out its assignments in capital market related issues, it was directed to sign an undertaking to be diligent and of good behaviour in its future dealings in the capital market.

Also Union Registrars Limited is 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. It was also directed to be diligent and of good behaviour in its future dealings in the capital market

Union Registrars Limited has also been fined for failing to be paying the declared dividends by Cadbury Nigeria Plc and report to the Commission that the company has refused to allow it handle its dividend payments. This act by Union Registrars was against the SEC Rules and Regulations and the Code of Conduct for Capital market operators.

The Commission also frowned at the fraudulent conduct of the directors in using trade loading and false suppliers stock certificates to manipulate the company’s financial reports. The criminal aspect of their behaviours have been referred yo the Economic and Financial Crimes Commission (EFCC) for investigation and prosecution.

For more details click:

*Official Statement of SEC on Cadbury Scandal

*Decisions of Administrative Proceedings Committee on Cadbury Scandal

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