SEC orders the sack of Oando CEO, Wale Tinubu

Wale Tinubu

There are indications that Oando will be getting a new chief executive officer should the decision of the SEC is anything to go by.

Nigeria’s Securities and Exchange Commission, SEC, has just barred  Mr. Wale Tinubu, the CEO of Oando Plc from being a director in any company for five years.

The SEC ordered the company to convene “An Extra-ordinary General Meeting of the company consisting the shareholders before July 1 to appoint new directors.”

The decision of the SEC means that Mr. Wale Tinubu would be removed as the substantive chief executive officer of Oando plc.

Oando is a Nigerian indigenous oil company with several interests across the various value chain of the oil and gas industry.

See below the full statement of the SEC:

Following the receipt of two petitions by the Commission in 2017, investigations were conducted into the activities of Oando Plc (a company listed on the Nigerian and Johannesburg Stock Exchanges). Certain infractions of Securities and other relevant laws were observed.

The Commission further engaged Deloitte & Touche to conduct a Forensic Audit of the activities of Oando Plc. The general public is hereby notified of the conclusion of the investigations of Oando Plc.

The findings from the report revealed serious infractions such as false disclosures, market abuses, misstatements in financial statements, internal control failures, and corporate governance lapses stemming from poor board oversight, irregular approval of directors’ remuneration, unjustified disbursements to directors and management of the company, related party transactions not conducted at arm’s length, amongst others. As part of measures to address these violations, the Commission has directed as follows:

Resignation of the affected Board members of Oando Plc, The convening of an Extra-Ordinary General Meeting on or before July 1, 2019, to appoint new directors, Payment of monetary penalties by the company and affected individuals and directors, Refund of improperly disbursed remuneration by the affected Board members to the company, Bar of the Group Chief Executive Officer (GCEO) and the Deputy Group Chief Executive Officer (DGCEO) of Oando Plc from being directors of public companies for a period of five (5) years. As required under Section 304 of the Investments and Securities Act, (ISA) 2007, the Commission would refer all issues with possible criminality to the appropriate criminal prosecuting authorities.

In addition, other aspects of the findings would be referred to the Nigerian Stock Exchange (NSE), Federal Inland Revenue Service (FIRS), and the Corporate Affairs Commission (CAC). The Commission is confident that with the implementation of the above directives and introduction of some remedial measures, such unwholesome practices by public companies would be significantly reduced.

Therefore, in line with the Federal Government’s resolve to build strong institutions, Boards of public companies are enjoined to properly perform their fiduciary duties as required under extant securities laws.

The Commission, as the apex regulator of the Nigerian capital market, maintains its zero tolerance to market infractions, and reiterates its commitment to ensuring the fairness, integrity, efficiency and transparency of the securities market, thereby strengthening investor protection.

The problem at Oando started after one of the major shareholders of the company wrote a petition calling for an investigation into a series of alleged financial impropriety at Oando plc.