While under the sanctions of the Securities and Exchange Commission (SEC), it is no longer at ease for Oando Plc.
The Nigerian police are still occupying key points at the headquarters Oando after the SEC ordered for the resignation and replace of Oando’s board of directors.
The SEC which is Nigeria’s apex securities and capital markets operators said it discovered series of financial impropriety committed by Wale Tinubu, the company’s CEO as well as his other board members.
While Oando has denied all the allegations as lacking merit and devoid of truth, the SEC appointed an interim board to oversee the affairs of the company. In a swift move, Oando had approached the courts to secure an exparte motion, suspending all actions of the SEC till the determination of the suit.
The order to suspend Oando’s board came in last Friday, when 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:
- 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.
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.”
People close to the SEC said the commission is determined to follow its order but will obey the ruling of the court on stay of execution.
