Oando: SEC Sets up Interim Management

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Ndubuisi Francis in Abuja 

The Securities and Exchange Commission (SEC) has constituted an Interim Management Team (IMT) headed by Mr. Mutiu Sunmonu, to oversee the affairs of Oando Plc and conduct an Extra Ordinary General Meeting on or before July 1, 2019.

Although other members of the IMT were not disclosed, SEC said in a terse statement issued last night that the team is to also appoint new directors to the board of the company, who would subsequently select a management team for Oando Plc.

The head of Oando Plc Interim Management Team (IMT)  was the managing director of The Shell Petroleum Development Company of Nigeria Limited from 2004 to March 1, 2015.

He served as Vice President of Production Sub-Saharan Africa at Royal Dutch Shell Plc and served as its Country Chairman of Nigeria since December 31, 2009.

Sunmonu, who is on the board of many companies, including Unilever Nigeria Plc, where he is a non-executive director and Non-Executive Chairman of San Leon Energy Plc, also serves as an Executive Consultant to Pan Ocean and Newcross EP providing leadership across the operations, regulatory/statutory compliance and external relationship management.

He is also chairman, Julius Berger Nigeria Plc, a post he has held since 2015.

The SEC had on Friday barred the Oando Chief Executive Officer (CEO), Mr. Wale Tinubu, and his deputy, Mr. Omamofe Boyo, from being a director in any public company for the next five years.

SEC also directed board members found guilty of various infractions to resign.

The commission equally called for the convening of an extra-ordinary general meeting before July 1 to appoint new directors.

SEC’s decisions followed the conclusion of investigations into the activities of Oando Plc, having received petitions last year that the company had indulged in capital market infractions.

SEC had given Deloitte the go-ahead to carry out a forensic audit after Mr. Dahiru Mangal, a shareholder, accused the company of declaring false profits and insider trading.

In a statement issued on Friday to announce the conclusion of investigations, SEC had said: “Following the receipt of two petitions by the commission in 2017, investigations were conducted into the activities of Oando Plc (a company listed on the Nigerian and Johannesburg Stock Exchanges).

“Certain infractions of securities and other relevant laws were observed. The commission further engaged Deloitte & Touche to conduct a forensic audit of the activities of Oando Plc.

“The general public is hereby notified of the conclusion of the investigations of Oando Plc. The findings from the report revealed serious infractions such as false disclosures, market abuses, mis-statements in financial statements, internal control failures, and corporate governance lapses stemming from poor board oversight, irregular approval of directors’ remuneration, unjustified disbursements to directors and management of the company, related party transactions not conducted at arm’s length, among others.”

The company is also expected to pay an undisclosed monetary penalty while board members are expected to refund improperly disbursed remuneration.

In addition, the SEC stated that other aspects of the findings would be referred to the Nigerian Stock Exchange, NSE, Federal Inland Revenue Service, FIRS, and the Corporate Affairs Commission, CAC.