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The Action Congress (AC) has asked
regulatory authorities to act urgently to defuse the crisis at African
Petroleum Plc, as it is endangering the investments of thousands of
shareholders.

In a statement by its national
publicity secretary, Lai Mohammed, the party said it was compelled to
make the call because the company is of strategic importance to the
country’s economy.

The N150-billion company is a major
player in the energy sector and boasts nearly 97,000 shareholders.
Media reports accuse the company of manipulating their accounts to show
profitability and hide losses of up to N15 billion.

The party also said it is worried about
infighting among the company’s management, which resulted in the
termination of the managing director and the suspension of an executive
director and the company secretary.

“In all this, it is the shareholders
who are holding the short end of the stick,” said the party. “After
all, it is said that when two elephants fight, it is the grass that
suffers.”

SEC intervention

The party called on the Securities and Exchange Commission (SEC) to investigate and take necessary actions to stem the crisis.

“SEC must play its statutory role so as
to avoid the kind of crisis that was witnessed in the banks, with dire
consequences to the economy and to hapless investors, due to poor
regulatory controls.”

However, it warned that the commission
might be hampered in carrying out its duties in the case because of the
perceived closeness of the company’s chairman, Femi Otedola, to
President Goodluck Jonathan.

“We are also worried by the insinuation
that this perceived closeness to power has bred impunity in [the
company], more so at a time the chairman was bestowed with one of our
country’s highest awards – Commander of the Order of the Niger (CON) –
by Mr. President,” said the party.

“We have no reason to believe that this insinuation is true, but Nigerians must be shown clearly that it is not.”