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.
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.