SEC freezes CSCS accounts of Cadbury\\\'s former directors
Category: Frauds & Scandals
February 14, 2008/Guardian
In the first of apparent moves to re-instill public confidence in financial reporting, SEC has ordered the freezing of accounts of the sacked management of Cadbury Nigeria Plc.
This is coming on the heels of recent disclosures about the financial reporting of firms such as Union Dicon, NAMPAK and lately Wema Bank Plc.
In its statement yesterday, The Securities & Exchange Commission noted with dismay that while the company\'s accounts and the affected officials were still being investigated, some of the directors had made moves to dematerialise their shares probably to sell same.
To prevent pre-emptive sale of such directors and senior officials\' shares, the commission therefore ordered that such accounts be frozen henceforth.
Besides, the Nigerian Stock Exchange and stockbrokers have been advised to deal with the sale of the shares of the executives and officers of Cadbury with caution.
The commission said:
\"It has been observed that some directors and senior officers of Cadbury Nigeria Plc, whose roles in misstatement of accounts are under investigation are now dematerialising their shares and lodging same with the Central Securities and Clearing System (CSCS).
The intention of this is not known. Consequently, SEC hereby directs the freezing of CSCS accounts of persons so identified to prevent a pre-emptive sale of those sharesÃƒÆ’Ã†â€™Ãƒâ€ Ã¢â‚¬â„¢ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬Ãƒâ€¦Ã‚Â¡ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã†â€™ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â¯.
The Nigerian Stock Exchange, CSCS and all stockbrokers are advised to deal with caution in share accounts of the executives or officers of Cadbury.\"
It would be recalled that the board of directors of Cadbury informed SEC and the NSE that the company\'s account was mis-stated under the management of Mr. Bunmi Oni as managing director, and Mr. Akadiri as finance director.
The case is still being investigated and the investing public awaits its results, but some parties involved have gone to court to stop the investigations.