SEC freezes Cadbury directors' shares

Gbola Subair and Friday Ekeoba - 14.02.2008

THE Securities and Exchange Commission (SEC) on Wednesday ordered the freezing of the shareholding accounts of some directors of Cadbury linked with alleged fraud that rocked the organisation last year.

SEC has, therefore, alerted the Central Securities Clearing System (CSCS), the Nigerian Stock Exchange (NSE) and all stockbrokers to the alleged plan by some directors and senior officials of Cadbury who are under investigation over doctored accounts to dispose of their shares

According to a statement issued by Head of Media of SEC, Mr. Lanre Oloyi, on Wednesday, some directors and senior officials of Cadbury whose roles in mis-statement of accounts are under investigation were now dematerialising their shares and lodging same with the Central Securities and Clearing System (CSCS).

Though SEC said the intention of the people was not known, it, however directed the freezing of CSCS accounts of persons so identified to prevent a pre-emptive sale of those shares.

To ensure that the officers’ shares remained intact, SEC advised the NSE, CSCS and all stockbrokers to be cautious in matters relating to the share accounts of the executives or officers of the company.

Two years ago, the accounts of Cadbury were discovered to have been overstated to the tune of over N5 billion.

In the wake of the company’s mis-statement, the managing director and the financial director of the company, Mr. Bummi Oni and Mr. Ayo Akadiri, respectively, were relieved of their positions so as to allow for unhindered investigation into the matter.