The Securities and Exchange Commission (SEC) has set up an interim
management team in Oando Plc, headed by Mr Mutiu Olaniyi Adio Sunmonu,
the Commission’s spokesperson Efe Ebelo said.
Sunmonu will oversee the affairs of Oando Plc, and conduct an Extra
Ordinary General Meeting on or before July 1, 2019, to appoint new
directors to the Board of the company, who would subsequently select a
management team for Oando Plc.
But the oil firm denied the development, saying that its management team
and board of directors remained unchanged.
“Oando’s Management Team and Board of Directors have not changed,” the
company tweeted on Monday morning. “We advise you to refrain from
sharing incorrect information or reach out to the Company to verify
information before dissipation.”
SEC said Oando’s group chief executive Wale Tinubu, his deputy Omamofe
Boyo and the oil company committed, among other infractions, “false
disclosure” and “misstatements in financial statements”.
The Commission said it had substantial evidence that there were
instances of “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.”
SEC consequently directed that Tinubu and Boyo to resign from the board
of the oil company immediately and that the duo must be replaced through
an extraordinary general meeting by July 1, 2019, the Commission said.
Tinubu, Boyo and Oando are also expected to monetary penalties and also
refund “improperly disbursed remuneration.”
However, a spokesperson for Oando Ayotola Jagun said the oil firm was
unable to ascertain what findings were made in relation to the alleged
infractions and defend itself accordingly before the SEC.
It said the claims were “unsubstantiated“ and that it will be seeking
redress in a court.
“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,” he said.