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The Nigerian Stock Exchange on Thursday placed full suspension on the shares of Cadbury Nigeria Plc, following the decision of the Investment and Securities Tribunal to uphold the indictment of the company by the Securities and Exchange Commission over financial misstatement.

The Deputy Director-General, NSE, Mr. Lance Elakama, disclosed on the floor of the Exchange that the ruling of the IST was binding on the Exchange since it was the court of competent jurisdiction on investment matters.

The company had been indicted over an account misstatement to the tune of N5bn.

The NSE had declined an order by SEC, earlier in the year, to suspend trading on Cadbury shares, saying that the directive was not backed by law. SEC had indicted and banned the company’s former Managing Director/Chief Executive Officer, Mr. Bunmi Oni, as well as its former Financial Controller, Mr. Ayo Kadiri, from occupying positions of directors in any quoted company on the NSE, sequel to their involvement in the mis-statement of Cadbury’s financial account.

The commission also disclosed that the company’s directors had been referred to the Economic and Financial Crimes Commission for further investigation and prosecution. It also penalised and reprimanded Akintola Williams Deloitte and Union Registrars for their involvement in the alleged mis-statement of Cadbury’s result. SEC had said in a statement that it had, in its judgement, imposed a fine on Cadbury. It said “The company is to pay a fine of N100,000 in the first instance and a penalty of N5,000 per day from June 30, 2002 to December 14, 2006.

However, in a statement on Thursday, Cadbury said it had decided to pay the N21m fine imposed on it by SEC under protest in the interest of shareholders. The statement signed by the company’s Corporate Affairs Manager, Mr. Kufre Ekanem, said, “As a responsible corporate citizen, Cadbury Nigeria has consistently co-operated with all regulatory authorities since our disclosure of misstatements in 2006.

“Equally, Cadbury Nigeria has been obliged to challenge some of the processes of the regulatory authorities including lodging an appeal at the Investment and Securities Tribunal, seeking to overturn the decision of the SEC, which we believe is unfair, and amounts to a miscarriage of justice. This appeal is pending and has been adjourned for hearing to September 11, 2008.

“In the primary interest of our shareholders, who would be most prejudiced by the suspension of trading of Cadbury Nigeria’s shares, the board of directors has decided to pay the fine under protest to enable our shares to continue trading.

“We will continue to search for justice through the law courts.”

Let’s all see where this jungle justice judgements would lead us to with respect to the Cadbury issue. It’s good though that Cadbury is being put on the spot now, not just Bunmi Oni. It is noteworthy however that Cadbury is also now in court challenging SEC’s handling of the matter as well as Bunmi Oni.

Justice will prevail in the end i believe and though a lie might have gone ahead 20 years before, the truth will eventually catch up with it and overtake it.

 - punch