SEC Ban: Oando Threatens Legal Action

SEC Ban: Oando Threatens Legal Action

Oando Plc, has said that it would challenge the ruling of the Securities and Exchange Commission, SEC, on the outcome of its forensic audit.

Recall that SEC, on Friday, barred the company’s Group Chief Executive Officer, GCEO, Mr. Wale Tinubu and the Deputy Group Chief Executive Officer, DGCEO, Mr. Omamofe Boyo, from being directors of a public company for five years.

The decision of the body was based on alleged infractions discovered during forensic auditing of the company.



The commission also directed the resignation of some board members fingered in the alleged infractions, and called on the company to convene an extra-ordinary general meeting on or before July 1, to appoint new directors.

However, Oando, in a statement issued in Lagos on Friday, by its Head of Corporate Communications, Mrs. Alero Balogun, said it would take all legal steps to protect its business and assets, while remaining committed to act in the interest of its shareholders.

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She said the commission’s call for resignation of affected board members of the company and convening of an extra-ordinary general meeting on or before July 1, 2019, to appoint new directors, was unsubstantiated.

She further described as unsubstantiated payment of monetary penalties by the company and affected individuals and directors, refund of improperly disbursed remuneration by the affected board members to the company.

Balogun noted that the commission had not given the company the opportunity to respond to the report of the audit.

“The company has not been given the opportunity to see, review and respond to the forensic audit report and so is unable to ascertain what findings, if any, were made in relation to the alleged infractions, and defend itself accordingly before the SEC,” she said.

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Therefore, she said that Oando “is of the view that the alleged infractions and penalties were unsubstantiated, ultra vires, invalid and calculated to prejudice the business of the company.”

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