SEC bars Oando CEO for 5 years for Corporate governance lapses

 

Mr. Wale Tinubu, the Group Chief Executive Officer, CEO, of Oando Plc, and Deputy GCEO, Omamofe Boyo, have been indicted by the Securities and Exchange Commission, SEC, for misconduct in conducting the affairs of the company and barred them from holding the position of director in any public company for a period of five years.
The Commission also directed the resignation of the other affected Board members and mandated the company to convene an Extra-ordinary General meeting, EGM, on or before July 1, 2019, to appoint new directors.
SEC had launched an investigation into the activity of Oando following the receipt of two petitions in 2017 from shareholders of the company, accusing the company of financial misappropriation.
The Commission said in a statement by Efe Ebelo, Head, Corporate Communication, SEC, that findings from the forensic audit conducted by Deloitte & Touche, revealed certain infractions of securities and breach of other relevant laws such as false disclosures and market abuses.
SEC said: “Following the receipt of two petitions by the Commission in 2017, investigations were conducted into the activities of Oando Plc. “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 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, among others”. The Commission, therefore, directed the payment of monetary penalties by the company and affected individuals and directors and refund of improperly disbursed remuneration by the affected Board members. The Commission stated that all issues with possible criminality would be referred to the appropriate criminal prosecuting authorities as required under Section 304 of the Investments and Securities Act, (ISA) 2007, while 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,” the statement added.

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