Reps direct SEC to take over Capital Oil

…Vows to nail ex-CEOs over fraud
The House of Representatives Committee on Capital Market and Institutions on Thursday directed the Security and Exchange Commission (SEC) to take over the Capital Oil Limited, a public liability company incorporated in 1985.

This directive was handed down by the sub – committee Chairman, Rep. Tony Nwulu at the ongoing investigate public hearing on the compliance of companies with operational and regulatory requirements.

Rep. Nwulu, who expressed dismay at the startling revelations by the Chief Financial Officer of Capital Oil Limited, Amos Asuoaga, who in a memorandum and oral presentation to the sub – committee had revealed that the company had become insolvent based on fines and unremitted tax liabilities amounting to over N700 million.

According to the lawmaker, it is disheartening that that a public liability company established with shareholders funds would go down the drain the without the investing public enjoying the benefits of their investment.

He vowed that the House committee would expose any fraud perpetrated by any individual still holding or who may have held any position of responsibility in the company no matter how highly placed he or she is in the society.

According to him, the committee would invite all past chief executives of the company during the ongoing probe on compliance with operational and regulatory requirements by publicly quoted companies.

He declared that Capital Oil is a public liability company established with public funds, adding that “the committee is determined to ensure the protection of shareholders funds in form of investment by individuals into the company is protected”.

At yesterday’s hearing, the company’s Chief Financial Officer, Amos Asoaga revealed that a former Managing Director of the oil company, Dr. Tunde Sobodu, who held sway between 2012 and 2014 mismanaged the finances of the company.

He disclosed that the management of the company under the former chief executive had acquired many properties that are of no value to the entity.

Also, Asoaga said that In 2012 Zenith Bank advanced a loan facility of N450 million to the company at 12 per cent interest which affected the fortunes of the company negatively.