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Oando denies owing Oceanic Bank

By Omoh Gabriel
Oando Plc, yesterday, denounced the Central Bank of Nigeria (CBN’s) list of bank-debtor, stating that its account with Oceanic Bank cannot be described as non- performing.

The Nigerian indigenous oil company, in a statement, said: “Our attention has been drawn to the Advertorial published by the Central Bank of Nigeria (CBN) in national daily newspapers, on Wednesday, August 19, 2009.

Oando denied that it has total ‘non-performing’ loan facilities of N7,100,574,000 with Oceanic Bank Plc.

“In no way can our relationship with Oceanic Bank be deemed non-performing. As part of our on-going commercial relationship with Oceanic Bank Plc, we had different credit balances on our deposit account and other debit balances on our advised loans as at May 31, 2009. For the avoidance of doubt, none of these debit balances represented a past due obligation.”

It said it had balances as at May 31 and August 14, 2009 in its various account with the bank. Specifically, it said its current account with the bank as at May 31,2009 was N2,105,356,543.29 while the balance on August 14 in the account was N2,055,330,394.49. It added that its Bridge Facility account for rigs had a debit of $16,035,670.14 as at May 31, and $16,105,425.31 as at August 14.

It also said that Oando Supply & Trading Ltd had a current account balance of (N179,725,987.04) in May and (N249,613,920.96) in August.

Oando stated that in addition, the Bank served as issuing house for a five billion, five hundred million naira Commercial Paper which has since been settled on June 28, 2009 in line with pre-agreed terms.

It said “We have demanded that the CBN and Oceanic Bank correct the erroneous impression that has been created by this advertorial. Oando is a Public Limited Company and any sensitive publication such as this could have a material impact on local/international shareholders, prospective investors and debt providers’ confidence in the organization. Oando is a responsible entity and continues to be committed to proper financial management practices” it stated.


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