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SEC queries Evans Medicals, suspends MD, finance director

By Peter Egwuatu
The Securities andExchange Commission (SEC) has queried Evans Medicals Plc for failure to file its 2008 annual accounts on schedule and consequently has suspended the company’s Managing Director and Finance Director, Dr. Kiran Virat, Alhaji J.B. Alli-Oluwafuyi respectively.

The Commission has directed Evans Medical Plc to notify The Nigerian Stock Exchange (NSE) and its dealing members and to issue a press statement on its N490 million loss arising from unsupported inventory balance in its 2008 Annual Accounts.

The Head of Media, SEC, Mr. Lanre Oloyi disclosed this to Saturday Vanguard, yesterday, saying, “ The Commission gave this directive at a meeting with the company’s directors at SEC headquaters in Abuja following its failure to file the 2008 Annual Accounts on schedule.”

Continuing he said “ At the meeting with the Commission, the Board outlined steps it had taken as a result of this development which included the engagement of PriceWaterHouseCoopers Ghana to carry out a forensic review of the company’s books. It had also appointed an Acting Managing Director while the substantive MD and the Executive Director (Finance) were asked to proceed on compulsory leave pending the conclusion of the forensic review exercise.”

Oloyi disclosed that the Commission has also directed the company to submit the list of its direct and indirect shareholdings of the Board members, key officers and their related parties from January 1, 2008 till date.

Saturday Vanguard gathered that Evans Medicals Plc has since notified NSE and submitted its shareholding status to the Commission in addition to the final report of the forensic review which is currently being reviewed by the Commission.

It was also gathered that Evans recently responded to the NSE’s inquiry with the official statement that its 2008 Annual Reports & Accounts could not be submitted as at when due because of an “Exceptional Item” amounting to N549,886,000.00 that is now the subject of forensic investigation by Pricewaterhouse Coopers, Ghana.

According to information gathered, the company in a statement to the NSE stated that
an admission of the Exceptional Item would result in a loss before tax of N490,769,000.00 by the company and a loss before tax of N387,824,000.00 by the Group.


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