Tanzanian regulators call on NICOL heads to quit

* Regulators say NICOL directors failed to correct accounts

* Trading in NICOL's shares suspended in August

DAR ES SALAAM, Oct 29 (Reuters) - The directors of Tanzania's National Investment Company (NICOL) NICOL.TZ should resign for failing to correct its accounts since the suspension of trading in its shares earlier this year, regulators said on Thursday.

The Dar es Salaam Stock Exchange (DSE) suspended trading in the private equity firm's shares in August after it failed to tell its shareholders that a pharmaceuticals company in which it has a 51 percent stake was put into receivership late last year.

On Thursday, the DSE, the Capital Markets and Securities Authority (CMSA), the National Board of Accountants and Auditors (NBAA) and the Business Registrations and Licensing Agency published a joint statement calling on the directors to resign.

It said they asked NICOL to prepare its financial statements in line with international reporting standards and to recall earlier statements for the financial year ended Dec. 31, 2008.

"NICOL directors have, despite the directives from the three regulators (CMSA, NBAA and DSE), resisted the directive to rework the financial statements," the statement said.

They said after NICOL failed to cooperate with its auditors, the auditors withdrew their opinion of its financial statements.

"Withdrawal of opinion means that NICOL has no audited financial statements for the year ended 31st December 2008."

NICOL, which listed all its 1.6 billion shares on the Tanzanian bourse just over a year ago, said it would respond to the statement later.

The regulators said NICOL's directors had proceeded to call an annual general meeting on Oct. 24 without revised and audited financial statements.

They also said that NICOL had invested in the pharmaceutical company and in a food production company without conducting proper due diligence, and was yet to enlist a fund manager to guide its future investments as ordered by the regulators.

"In view of the above, NICOL's directors who were holding office as at Oct. 24, 2009, are not suitable and should resign or be removed from office," the regulators' statement said.

"Legal action should be taken against them as per the provisions of the Companies Act."

NICOL's shares closed trading on Aug. 20 at 270 shillings ($0.203), off a high of 285 shillings on Feb. 19 and a debut price of 300 shillings. (Reporting by George Obulutsa; Editing by Greg Mahlich)