Oando denies purported response letter to SEC

Wale Tinubu

Nigeria’s Oando Plc has denied a response letter the company was said to have sent to the Nigerian Securities and Exchange Commission, SEC.

In our earlier report, we reported that Oando Plc has sent a letter to the SEC challenging the order of the Commission ordering the company’s CEO, Wale Tinubu and the board to resign.

The company said in a statement that:

“Our attention has been drawn to an unsigned document circulating online addressed to the Securities and
Exchange Commission (SEC) and allegedly from the Chairman of Oando PLC.”

“We would like to use this medium to inform the general public that the Company has not officially
released a statement or letter in response to the SEC.”

“We urge the general public to be aware,” the company said.

Last Friday, Nigeria’s top capital market regulator said the impropriety it dug at Oando plc ranges “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.”

The SEC ordered that:

  1. Resignation of the affected Board members of Oando Plc,
  2. The convening of an Extra-Ordinary General Meeting on or before July 1, 2019, to appoint new directors,
  3. Payment of monetary penalties by the company and affected individuals and directors,
  4. Refund of improperly disbursed remuneration by the affected Board members to the company,
  5. 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.

The SEC said it will also e referring the matter to the appropriate authorities for ” 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).”

In a swift but brief response, Oando rebuffed all the allegations of the SEC claiming that:

“Oando is of the view that these alleged infractions and penalties are unsubstantiated, ultra vires, invalid and calculated to prejudice the business of the Company. The Company has not been given the opportunity to see, review and respond to the forensic audit report and so is unable to ascertain what findings (if any) were made in relation to the alleged infractions and defend itself accordingly before the SEC,”

The company threatened it will go ahead to:

“Take legal steps to protect its business and assets whilst remaining committed to act in the best interests of all its shareholders.”