The Securities and Exchange Commission (SEC) has barred Wale Tinubu, chief executive officer of Oando Plc, from being a director in any public company for the next five years.
In a statement by the commission posted on its website, it further directed that an extraordinary general meeting should be convened before July 1 to appoint new directors for Oando Plc.
According to SEC, following the receipt of two petitions by the Commission in 2017, investigations were conducted into the activities of Oando Plc (a company listed on the Nigerian and Johannesburg Stock Exchanges). It added that certain infractions of securities and other relevant laws were observed. The Commission said it further engaged Deloitte & Touche to conduct a Forensic Audit of the activities of Oando Plc.
“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 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.
As part of measures to address these violations, the Commission directed as follows:
Resignation of the affected Board members of Oando Plc.
The convening of an Extra-Ordinary General Meeting on or before July 1, 2019, to appoint new directors,
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,
Bar of the Group Chief Executive Officer (GCEO) and the Deputy Group Chief Executive Officer (DGCEO) of Oando Plc from being directors of public companies for a period of five (5) years.
SEC said that as required under Section 304 of the Investments and Securities Act, (ISA) 2007, it 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), it said.
SEC said it was 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.
It added that 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,” it said.
Iheanyi Nwachukwu and Olufikayo Owoeye
