The Securities and Exchange Commission (SEC) has barred CEO of Oando Plc,Wale Tinubu, from being a director in (any) public company for the next five years due to alleged fraudulent audit in the company.
In a statement made on Friday, the commission after the capital market regulator concluded investigation into the activities of the company, regarding alleged infractions and other market violations.
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Statement by the commission reads,
“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),” the statement read.
“Certain infractions of Securities and other relevant laws were observed. The Commission further engaged Deloitte & Touche to conduct a Forensic Audit of the activities of Oando Plc.
“The general public is hereby notified of the conclusion of the investigations 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.”
Also barred is the Deputy CEO of the group, Omamofe Boyo while other board members found guilty of various infractions have been directed to resign.
The company is also expected to pay an undisclosed monetary penalty while board members are expected to refund improperly disbursed remuneration.
In addition, the SEC stated that 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).
Recall that in 2017, Oando was embroiled in petitions and scandals as two aggrieved shareholders Gabriel Volpi and Dahiru Mangal petitioned the SEC.
The duo had accused the senior management of Oando of mismanagement and the acquisition of oil production assets of Conoco-Phillips in Nigeria.
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The petition made the SEC institute a forensic audit into their accounts.
According to reports, the former DG of the Securities and Exchange Commission Munir Gwarzo was suspended for his refusal to halt the audit despite Oando losing court case against the regulator.
The commission has directed the convening of an extraordinary general meeting on or before July 1, 2019, to appoint new directors.
