N21m SEC fine: Cadbury goes to court

Friday Ekeoba Lagos - 14.05.2008

CADBURY Nigeria Plc for the first time reacted to the N21 million fine slammed on it by the Securities and Exchange Commission (SEC), saying it had gone to court to challenge the legality of SEC’s action.

SEC had fined Cadbury Plc last month for discrepancies in its accounts.

Speaking with capital market reporters on the suit and the company’s seeming silence on the recent announcements on its accounts, its Corporate Affairs Manager, Mr Kufre Ekanem, said “the discerning public understands the key issues involved in this matter and they applaud our rationale for awaiting the conclusion of the ongoing legal actions while staying focused on our core purpose of creating brands people love.”

According to Ekanem, “Cadbury Nigeria discovered the mis-statements internally, got an independent investigation done and disclosed the findings without making a song and dance of the matter.

“Thereafter, we co-operated with all external enquiries and regulatory processes (including the SEC). When the issues of jurisdiction and the legal remit of the SEC came up, we referred the matter to the courts for judicial interpretation and that matter is still in court even till this moment”

Sometimes last mont,h SEC found Cadbury’s former Managing Director, Mr. Bunmi Oni and Finance Controller, and Ayo Akadirri, culpable for the company’s financial misstatement to the tune N15 billion as a result of which it was fined N21 million and also directed that the two managers must not serve as directors in any Nigerian quoted company for life.