The Nigerian Securities and Exchange Commission has issued a report on the investigation of the recent allegations against board members of OANDO Plc, a company listed on the Nigerian and Johannesburg Stock Exchanges.
The report directed that the Group CEO, Wale Tinubu and the deputy, Mr. Omamofe Boyo resign from the company. The report also directed that they be barred from being directors of public companies for a period of five (5) years.
Here is the press release from the regulatory authority released yesterday
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.
Signed
Management
May 31, 2019
The company has issued a tweet and a press release by the Company Secretary, Ayotola Jagun, to challenge the ruling.
Oando PLC Challenges the Securities and Exchange Commission’s Ruling on the Outcome of the Forensic Audit into Oando PLC https://t.co/SxaoM5sSqa
— Oando PLC (@Oando_PLC) May 31, 2019
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 reserves its rights to take all legal steps to protect its business and assets whilst remaining committed to act in the best interests of all its shareholders.
