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NSE fines Julius Berger, Costain, others for defaulting

By on June 23, 2013

The Nigerian Stock Exchange has imposed a fine of N14.8m on Julius Berger Nigeria Plc, Costain (West Africa) Plc and six other quoted companies for various infractions.

The information obtained by our correspondent from the NSE’s X Compliance report listed the infractions to include unauthorised publications, non-disclosure of material information and default in filing financial information within the stipulated period.

A breakdown of the fine showed that International Energy Insurance Plc was fined N3.8m by the Exchange for filing its audited December 2011 financial results after the due date.

Costain (West Africa) also got a fine of N3.6m for late filing of its March 2012 audited results, while Mutual Benefits Assurance Plc was fined N3m for filing its audited December 2011 results after the due date.

Julius Berger was fined N1.470m for the non-disclosure of the substantial shareholding of Oasis Petroleum Company Limited in the 2011 Annual Reports and Account. Oasis Petroleum holds 9.8 per cent of Julius Berger’s shares.

Honeywell Flour Mills Plc was also fined N1.26m for the unauthorised publication of its Extraordinary General Meeting, while Custodian and Allied Insurance Plc and Crusader Insurance Plc were fined N661,500 and N472,500, respectively for unauthorised publication of the notice of their court-ordered meetings.

Wapic Insurance Plc was fined N496,125 for a publication on the appointment of directors without the approval of the NSE.

Early this year, the Exchange had imposed a fine of N56.3m on 31 listed companies for failing to file their financial statements within the stipulated period.

The NSE said the sanctions were imposed on the companies because they filed their 2011 and 2012 financial statements after the regulatory due date.

Daar Communications Plc, Ikeja Hotels Plc and John Holt Plc had the highest fines of N3.4m each for failing to submit their audited accounts for December 2011 as at the due date.

Linkage Assurance Plc was fined N3.3m for its failure to file in its December 2011 audited accounts within the stipulated timeframe, while Equity Assurance Plc, Standard Assurance Plc, Mutual Benefits Plc, Great Nigeria Insurance Plc and African Alliance Insurance Plc were fined N3m each for the same offence.

Other companies that faced the NSE sanction included Unic Insurance Plc, IPWA Plc, Wema Bank Plc, Guinea Insurance Plc and Costain (West Africa) Plc.

Conoil Plc, Oando Plc, Dangote Flour Mills Plc, C & I Leasing Plc, Cornerstone Insurance Plc, John Holt Plc, Premier Paints Plc, SCOA Nigeria Plc and Union Bank of Nigeria Plc were also punished.

The Exchange noted that it applied the sanctions in accordance with the provisions of Section 14 of Appendix 111 of the listing rules.

Last year, the Head, Legal Division, NSE, Mrs. Tinu Awe, had announced that the Exchange would introduce whistle-blowing in 2013 to ensure full compliance with its rules and regulations by the operators.

Awe said that the aim was to strengthen the NSE regulatory framework to protect market integrity.

She reiterated the Exchange’s commitment to building a strong regulatory framework that would protect investors and restore their confidence in the nation’s bourse.

Awe also explained that the NSE recently introduced X-Compliance and Brokers Trak reports to ensure that quoted companies and stockbroking firms disclosed their transactions as and when due.

The Head of Listings Regulation Department, NSE, Ms Hauwa Dogonyaro, said the X-Compliance report was an initiative designed to maintain market integrity and to protect investors.

According to Dogonyaro, the X-compliance report is a snapshot of information to guide investment decision and provide information on the compliance status of listed companies.

She said quoted companies that failed to comply with post-listing rules would be sanctioned to ensure good corporate governance.

 

 

 

 

[Punch]