*Tinubu’s suspension will bring sanity to NSE – operators
Oando Plc said on Friday that it would challenge the Securities and Exchange Commission (SEC) ruling on the outcome of its forensic audit.
The company made the disclosure in a statement issued in Lagos by its Head of Corporate Communications, Mrs Alero Balogun.Balogun said that the company would take all legal steps to protect its business and assets, while remaining committed to act in the interest of its shareholders.
“The company reserves the rights to take all legal steps to protect its business and assets whilst remaining committed to act in the best interest of all its shareholders,” she said.
SEC had on Friday barred the company’s Group Chief Executive Officer (GCEO),Mr Wale Tinubu, and the Deputy Group Chief Executive Officer (DGCEO), MrOmamofeBoyo, from being directors of a public company for five years.
These were outcomes of the forensic audit of the company instituted by the commission in March 2018.
SEC noted that it appointed Deloite Nigeria to proceed with the forensic audit.It said the audit revealed infractions.
The commission in a statement signed by MrsEfeEbelo, its Head of Corporate Communications,directed resignation of affected board members, and called on the company to convene an extra-ordinary general meeting on or before July 1, to appoint new directors.
Balogun, however, described as unsubstantiated, the Commission’s call for resignation of affected board members of OandoPlc and convening of an extra-ordinary general meeting on or before July 1, 2019, to appoint new directors.
According to her, 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 were also unsubstantiated.
Balogun said the company’s attention had been drawn to a statement issued by the commission on Friday, barring its GCEO and DGCEO from being directors of public companies for a period of five years.
She said that Oando was of the view that the alleged infractions and penalties were 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,” she said.
Tinubu’s suspension will bring sanity on NSE – Operators in the nation bourse on Friday said the suspension of Mr Wale Tinubu, the company’s Group Chief Executive Officer, and MrOmamofeBoyo, the Deputy Group Chief Executive Officer from public companies for five years would bring sanity to the capital market.
They spoke in separate Interviews in Lagos in reaction to the outcome of the Securities and Exchange Commission (SEC) forensic audit of Oando Plc.SEC had in March 2018 announced the commencement of audit of OandoPlc’s account Deloite Nigeria.
According to Mr Ambrose Omordion, the Chief Operating Officer, InvestData Limited, the suspension would send a signal to other managing directors and executives in the market.Omordion said the outcome of the forensic audit showed that SEC could bite and not only bark.
He said the investing public had been calling for change in the company’s management for a long time, adding that there will be sanity in the company when the new management takes over in July.
“Other companies and their directors will sit up, seeing how Oando management and its directors ended up.SEC decision will further boost corporate governance and transparency in quoted companies and increase investors’ confidence,” Omordion said.
To the National President, Constance Shareholders Association of Nigeria,MalamShehuMikail, also expressed satisfaction at the commission’s decision. He said the ban would instill transparency and corporate governance in the nation’s capital market.
The shareholder activist said the outcome showed that nobody was above the law in the market.He said some companies had collapsed due to lack of transparency and corporate governance.
