The Security and Exchange Commission (SEC) has addressed allegations leveled against it regarding the on-going Oando Plc saga. The capital market regulator maintained that due investigative processes were followed to arrive at its decision to remove Wale Tinubu and Omamofe Boyo as the company’s Group Chief Executive Officer and Deputy Group Chief Executive Officer, respectively.
In an official press release obtained by Nairametrics from the Commission’s website, SEC debunked various media reports questioning its regulatory authority, as well as insinuations that the SEC failed to observe due process in the investigations of Oando Plc.
#PressReleaseInvestigation Of Oando Plc https://t.co/zJyB7ca37Z
— SEC Nigeria (@SECNigeria) June 9, 2019
Oando’s Investigation Explained: SEC stated that it acknowledges that fair hearing is a paramount and fundamental principle. And as a law-abiding agency, THE Commission adheres to all its investigative processes. According to SEC;
“In the course of the investigations, communications e.g. letters and phone calls were exchanged and meetings held between the Commission and Oando Plc, requesting for its comments and explanations on issues relating to the investigations. The findings of the Commission was communicated to the Group Chief Executive Officer of Oando Plc by a letter dated July 10, 2017.
“The Commission subsequently engaged Deloitte & Touche to conduct a Forensic Audit of the activities of Oando Plc. In the course of conducting the audit, Deloitte & Touche held regular sessions with members of the Board and senior management of Oando Plc, and afforded them the opportunity to provide explanations on issues relating to the investigation.
“The Commission subsequently engaged Deloitte & Touche to conduct a Forensic Audit of the activities of Oando Plc. In the course of conducting the audit, Deloitte & Touche held regular sessions with members of the Board and senior management of Oando Plc, and afforded them the opportunity to provide explanations on issues relating to the investigation.
“The Commission’s recent action on Oando Plc aligns with the above cardinal mandate, as the directive for the removal of persons from the board of Oando Plc and the appointment of an interim management team to temporarily steer the affairs of the company is to protect investors and preserve stakeholder value.”
Shareholders frustrations: SEC may have only responded to frustrations of shareholders, who have been critical of SEC’s sanction on Oando Plc. Last week, Speaking on behalf of Oando’s shareholders, Alhaji Kabiru Tambari alleged that SEC‘s intention is to kill the company. According to him, the regulator’s actions against the oil company defies logic.
Also, the founder of Stanbic IBTC Holdings Plc, Atedo Peterside, equally joined in the attack on SEC, expressing concerns over the development. Note that Nairametrics has earlier revealed why Oando will fight tooth and nail to save Wale Tinubu.
[Read Also: shareholders’ upset over sanction]
Bottom line: While Oando Plc earned a restraining court, last week, which voided SEC’s attempt to remove its Group Chief Executive Officer alongside his Deputy, the trouble is not yet over. SEC insisted thus;
“The actions of the Commission were properly effected pursuant to the provisions of the Investments & Securities Act (ISA) 2007 and the SEC Rules and Regulations made pursuant to the ISA 2007.
“These facts have been properly articulated in the court process filed at the Federal High Court by the Commission in response to the suit instituted by the Group Chief Executive Officer and Deputy Group Chief Executive officer of Oando Plc.”
In the meantime, the court’s restraining order has brought some respite for shareholders, just as Oando’s shares rebounded on Friday by 5.26%.
