Security and Exchange Commission (SEC) has been restrained by a federal High Court, Lagos, from taking any step concerning its imposition of a fine of N91,125,000.00 on the Group Chief Executive Officer of Oando Plc, Mr. Wale Tinubu, and barring him and his deputy, Mr. Omamofe Boyo, from being directors of public companies for a period of five years.
Justice Mojisola Olatoregun granted the order yesterday following an ex-parte application accompanied with an affidavit of urgency filed before the court by Dr. Olisa Agbakoba (SAN) leading two other senior advocates, Tayo Oyetibo and Oluyede Delano.
The judge asked SEC to stay action on the matter pending the determination of the substantive suit.
In the affidavit sworn to by Boyo, the deponent averred that by the letter dated 18th of May, 2017, SEC wrote to Oando requesting a response to allegations in a petition written by Asbury Inc. Investment Company and Alhaji Dahiru Mangal dated 2nd May, 2017 of abuse of corporate governance and purported mismanagement of Oando’s business.
Oando said it duly addressed all the allegations in the petition through its letter dated 24th of May, 2017. Other letters written by SEC concerning this issue were equally addressed.
Thereafter SEC suspended trading on Oando shares. Due to the negative effects of the suspension, the company filed a legal action against SEC to challenge the commission’s decision.
The matter was later taken to the Court of Appeal when the case was struck out for lack of jurisdiction by the Federal High Court in Lagos.
Following discussions with SEC, it was agreed that the suspension be lifted.
Oando withdrew its appeal against the ruling of the Federal High Court, while Akintola Deloitte was retained as the sole auditor to conduct the forensic audit of the company.
The company did not receive any further communication from SEC until May 31, 2019 when it got SEC’s letter informing it of the conclusion of Deloitte’s audit.
In its letter, SEC decided that Tinubu should pay N91,125,000.00 to SEC for breaching section 60 (2) of the Investments and Securities Act 2017.
The crisis worsened yesterday as staff of the company were allegedly forced to stay away from work when policemen stormed the head office in Lagos.
The SEC announced on Sunday night that it had set up an interim management team to oversee the affairs of Oando following the order that its Group Chief Executive Officer, Mr. Wale Tinubu, and other affected board members should resign.
In a statement on Sunday, SEC said: “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, 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.”
The SEC had earlier on Friday announced the conclusion of the investigation of Oando and ordered Tinubu and other affected board members to resign.
The apex capital market regulator also said it barred Tinubu and the Deputy Group Chief Executive Officer of Oando, Mr. Omamofe Boyo, from being directors of public companies for a period of five years.
The commission said findings from the report revealed serious infractions such as false disclosures, market abuses, financial misstatements, internal control failures, and corporate governance lapses, “stemming from poor board oversight, irregular approval of directors’ remuneration, unjustified disbursements to directors and management, related party transactions not conducted at arm’s length, among others.”
But Oando said the “alleged infractions and penalties are unsubstantiated, ultra vires, invalid and calculated to prejudice the business of the company.”
