As the interim management team appointed by the Securities and Exchange Commission (SEC) readies to take over managerial roles at Oando Plc, the company has released a statement via its Twitter page (@Oando_PLC) refuting any change to its existing management.
Oando was specifically responding to a tweet by Business Journalist and ex-Bloomberg broadcaster, Boason Omofaye, who tweeted that “A new Interim CEO is incoming today: MS and at least four (4) of board members including the Chairman have tendered resignations as directed by @SECNigeria”
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
While the company debunked Omofaye’s tweet, SEC confirmed in a statement, that an interim management team headed by Mr. Mutiu Olaniyi Adio Sunmonu CON, will oversee the affairs of the company, and conduct an Extraordinary General Meeting (EGM) on or before July 1, 2019. During the EGM, new directors will be appointed into the company’s board. It would then be their job to subsequently select a new management team for Oando Plc.
Oando claims no changes: According to the tweet by Oando Plc, the information about interim management takeover is false. The tweet emphasised that Oando’s management team and board of directors remain the same.
This information is incorrect. Oando’s Management Team and Board of Directors have not changed. We advise you to refrain from sharing incorrect information or reach out to the Company to verify information before dissipation.
— Oando PLC (@Oando_PLC) June 3, 2019
What this means: The back and forth between SEC and Oando is not unexpected. Unfortunately, it is bad for the stock market and the Nigerian economy. Investors who own shares in Oando are seeing the company’s share price tank and this squabble is not helping matters. Both parties will have to allow the rule of law to prevail and protect the sanctity of the market.
What you need to know: The issue of the interim leadership team is attributed to why staff members of Oando Plc were denied access into the company’s building by officers of the Nigerian Police Force. The police take over is in line with the directives by SEC.
This is not the end: The tussle between Oando and NSE is expected to continue with the involvement of police and the courts. It could be recalled that 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.
Note: Nairametrics contacted Oando for clarification. However, the company’s contact number (which was made available for enquiries) was not going through.