The Securities and Exchange Commission (SEC) has constituted an interim management team for Oando Plc, following last week’s recommendation by SEC that some key management and board members of the embattled oil major should step down.
According to a statement issued by the capital market regulator, the interim management team will be headed by Mr Mutiu Olaniyi Adio Sunmonu (CON). Their core function will be to oversee the affairs of the company in the meantime. They have also been mandated to hold an Extra Ordinary General Meeting no later than July 1st, 2019.
“Further to our press release on Oando Plc, dated May 31, 2019, the commission hereby informs the public of the constitution of an interim management team headed by Mr Mutiu Olaniyi Adio Sunmonu CON, to oversee the affairs of Oando Plc, and conduct an Extraordinary General Meeting on or before July 1, 2019, to appoint new directors to the board of the company, who would subsequently select a management team for Oando Plc.”
Note that the interim management team is expected to take over today, June 3rd, 2019. In the meantime, about four of the company’s current board members (including the chairman HRM Oba M.A. Gbadebo), have all reportedly tendered their resignations in line with SEC’s directive.
A new Interim CEO is incoming today: MS and at least four (4) of board members including the Chairman has tendered resignations as directed by @SECNigeria
— Boason Omofaye (@BBoason) June 3, 2019
Earlier Developments: Recall that Nairametrics reported about the conclusion of SEC’s investigation into the affairs of Oando Plc. The investigation unraveled serious infractions by the company, ranging from false disclosures, market abuses, manipulation of financial statements, internal control failures, etc.
SEC also recommended the immediate resignation of some of the company’s key members of the board of directors; including the CEO who was also barred from becoming a director in any listed company in the next five years.
In reaction to this development, Oando Plc had issued a statement to the Nigerian Stock Exchange, absorbing itself of any wrongdoing whilst stating its resolve to take all necessary legal actions to establish its innocence.
The company also called a press conference on Saturday, during which time it maintained its innocence while further discrediting the findings of the investigation by SEC.
Back story: As we earlier mentioned, the messy situation began about two years ago after two of its directors (Gabriel Volpi and Alhaji Dahiru Mangal) accused the company’s management of financial recklessness and denying them adequate representation on the board.
Nairametrics believes that unless this matter is quickly resolved, it could have a negative impact on the company’s reputation and financials. By extension, the company’s shareholders (whom SEC is trying to protect), would bear the brunt of it.
Already, Oando Plc’s share price fell 9.6% to N4.20 on Friday as the news of the impending announcement by SEC made the rounds. The stock closed the month 13.4% down and is now the lowest share price (N4.15) since January 2019.