Court restrains SEC from barring Tinubu as director of public coys

Peter Fowoyo, Lagos

A Federal High Court, Ikoyi, Lagos on Monday restrained the Security and Exchange Commission (SEC) from taking any step concerning or acting on its decision contained in its letter of 31st May, 2019 imposing a fine of N91,125,000.00 on Adewale Tinubu and barring him and Omamofe Boyo from being directors of public companies for a period of five years pending the determination of the substantive suit filed before the court.

The duo of Adewale Tinubu and Omamofe Boyo had approached the court for an order restraining SEC and its agents, employees and privies from taking any step concerning or acting on its decision contained in its letter of 31st of May pending the determination of the motion for interlocutory injunction.

Joined as co – respondent is Mutiu Olaniyi Adio Sunmonu.

The order of court was sequel to an ex parte application accompanied with affidavit of urgency filed before the court by Olisa Agbakoba (SAN) leading two other senior advocates, Tayo Oyetibo and Oluyede Delano on behalf of the applicants.

In an affidavit sworn to by the Deputy Group Executive Officer of Oando Plc, Omamofe Boyo,the deponent averred that by letter dated 18th of May 2017, the Securities and Exchange Commission wrote to Oando requesting for a response to allegations in a petition written by Asbury Inc. Investment company and Alhaji Dahiru Mangal dated 2nd May 2017 alleging abuse of corporate governance and purported mismanagement of Oando ‘s business.

Oando duly address all the allegations in the petition through its letter dated 24th of May, 2017. Other letters written by SEC concerning this issue was equally
addressed.

Thereafter, SEC suspended trading on Oando shares, however due to the negative effects of the suspension, the company instituted a legal action against SEC to challenge SEC’s decision,the matter was later taken to court of appeal when the case was struck out for lack of jurisdiction by the Federal High Court in Lagos.

Following discussions with SEC, it was agreed that the suspension be lifted.

Whilst Oando withdraw its appeal against the ruling of the Federal High Court, Akintola Deloitte was retained as sole forensic auditor to conduct the forensic audit of the company.

The company did not receive any further communication from SEC until 31st of May,2019 when it received SEC’s letter informing it of the conclusion of Deloitte’s audit.

In its letter SEC decided and stated thus: Mr Tinubu pay the sum of N91,125,000.00, to SEC for breaching section 60(2)of the investments and securities Act 2017 for certification of untrue statements of material facts in Oando 2013, 2014 and 2015 financial statements and Mr TINUBU and Boyo be barred from being Directors of public companies for 5 years for improper conduct in managing the affairs of Oando.

Mr Boyo averred further that the SEC letter is devoid of material or particulars which would provide them with information, reasons, grounds or specific actions alleged to have been taken by them which constitute wrong doing under the law, neither were they interviewed by either Deloitte or SEC nor invited to appear before SEC to defend or respond to SEC’s findings as SEC’s letter which convey its findings also imposed sanctions on him and Tinubu.

Despite not providing them with opportunity to respond to the Deloitte audit report and the allegations contained therein, SEC proceeded to purportedly appoint Mr Mutiu Adio Sunmonu as head of interim management of Oando. They verily believe that his appointment would interfere with their management of Oando company.

Mr Boyo contended that if the injunctive orders being sought are not granted and SEC continues with its actions irreparable loss would be caused to Oando through the collapse of its share price.

SEC’s actions, if not restrained would also lead to an erosion of the company’s Shareholders funds thereby jeopardising the investment of thousands of Nigerians who are shareholders of Oando.

Meanwhile Justice Mojisola Olatoregun, has adjourned the matter till 14th of June, 2019 for hearing and determination of the applicants motion for interlocutory injunction.