Oando at loggerheads with SEC over forensic audit verdict

…Rules out GCEO resignation

Michael Ajayi

Following the release of the long-awaited Oando Plc forensic audit result on Friday, the Company has expressed dissatisfaction on the Securities and Exchange Commission (SEC) indicating summation.

SEC in a statement released on its website last week had placed attendant sanctions levelled against the Company on the basis of weighty infractions.

“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 the 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 said.

Reacting to this development, Oando Plc in a statement has reproved the move by SEC, saying that the decision was made without its consent.

“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”, Oando stated.

According to the Chief Operating Officer, Oando Energy Resource, Dr. Ainojie ‘Alex’ Irune, at a press conference at the Company’s head office, Oando made the decision to drop its court case challenging the SECs decision to carry out a forensic audit as it was assured that they could trust the system for an independent investigation that would be fair and follow due process.

The Oil firm, however, ruled out the resignation of its GCEO, Wale Tinubu, saying that it would take all legal steps to protect its business and assets, while remaining committed to the Act in the interest of its shareholders.

Speaking on this, the Head of Corporate Communications, Mrs. Alero Balogun, described the commission’s call for resignation of affected board members of Oando Plc and convening of an extra-ordinary general meeting on or before July 1, 2019, to appoint new directors as unsubstantiated.

“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.

Meanwhile, SEC while giving the section update on the forensic audit verdict, itemised its legal backing and further move on its decisions.

“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“, SEC said.