The Nigerian Aviation Handling Company (NAHCO) risks being sanctioned by the Nigerian Stock Exchange following the secret suspension and subsequent reinstatement of its Managing Director/CEO, Adetokunbo Fagbemi, by the Board of Directors.
Fagbemi’s suspension was only brought to the attention of the investing public, in a statement, after the Board held an emergency meeting on Wednesday, February 24, to reinstate Fagbemi.
Recall that the board had suspended Fagbemi on January 27 during the board of directors meeting, but the suspension took effect on February 3. She had been suspended for the company’s failure to procure equipment from a vendor.
During Fagbemi’s suspension, Olumuyiwa Olumekun, NAHCO’s Group Executive Director for Corporate Services, took over her position as MD/CEO.
The suspension lasted for four weeks following the provision of the certified bill of lading for the equipment by Fagbemi on February 24. The bill of lading provides departure and arrival dates of the equipment.
The move, described as market abuse by the Nigerian Stock Exchange because for four weeks the suspension was kept secret without notifying the investing public.
According to Nigerian Stock Exchange (NSE) listing rules, listed companies are compelled to immediately reveal to the investors and the public all factors or corporate information that might affect investors’ interest (shares), but NAHCO took four weeks before informing the public of Fagbemi’s suspension.
And the company only revealed the suspension when it lifted it. The NSE listing requirements are placed under market abuse, and the suspension of Fagbemi had a material effect on stock market activity.
