Recall that SEC had on Friday ordered the Group Chief Executive Officer of the company, Mr. Wale Tinubu, and other affected board members to resign after it concluded investigations into allegations of dubious activities by the affected persons.
SEC, in a statement on Friday, also said it barred Tinubu and the Deputy Group Chief Executive Officer of the company, Mr Omamofe Boyo, from being directors of public companies for a period of five years.
It also directed the convening of an Extraordinary General Meeting on or before July 1, 2019, to appoint new directors.
According to the commission, these, among others, are part of measures to address identified violations in the company.
But reacting to the decision of SEC, Oando in a statement said it is of the view that the alleged infractions and penalties are unsubstantiated, ultra vires, invalid and calculated to prejudice the business of the Company.
Jagun insisted that the processes that led to the sanctions against the company’s top chiefs were flawed as it was given an opportunity to review and respond to the outcome of the forensic audit carried out by Deloitte & Touche.
The forensic audit became necessary, according to SEC, after it received two petitions in 2017 about “certain infractions of securities and other relevant laws” perpetrated by the oil company.
ALSO READ: Financial Infractions: SEC bars Oando’s Group CEO, others for Five Years
The Commission said it had substantial evidence that there were instances of “serious infractions such as false disclosures, market abuses, misstatements 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, amongst others.”
SEC consequently directed that Tinubu and Boyo to resign from the board of the oil company immediately and that the duo must be replaced through an extraordinary general meeting on or before July 1, 2019, the Commission said.
Tinubu, Boyo and Oando are also expected to monetary penalties and also refund “improperly disbursed remuneration.”
However, Jagun said Oando was unable to ascertain what findings were made in relation to the alleged infractions and defend itself accordingly before the SEC.
“The Company reserves its rights to take all legal steps to protect its business and assets whilst remaining committed to act in the best interests of all its shareholders,” he said.
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