SWITZERLAND, MAY 31 – As reported exclusively by Today’s Echo, Nigerian indigenous oil giant, Oando Plc, has confirmed that it would take legal action to challenge the harsh sanctions imposed on its directors by the Securities and Exchange Commission(SEC).
Following the conclusion of its investigation on Oando Plc, the SEC on Friday, May 31, ordered the Group CEO, Wale Tinubu, and other affected board members to resign.
The 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.
Recall, Today’s Echo had earlier reported that Wale Tinubu may seek legal redress against the SEC sanctions.
In a statement signed by Company Secretary, Ayotola Jagun and seen by Today’s Echo’s correspondent, Oando said that these alleged infractions and penalties are unsubstantiated, ultra vires, invalid and calculated to prejudice the business of the Company.
Oando also said it reserves its rights to take all legal steps to protect its business and assets
The statement reads:
“Our attention has been drawn to a press release published by the Securities and Exchange Commission (SEC) on Friday, May 31, 2019 “Press Release on “Investigation of Oando PLC (the Company)”In the statement, the Commission confirms the conclusion of its investigations and that the findings from the report reveal serious infractions by the Company and as part of measures to address these violations, the Commission has directed penalties as follows:
- Resignation of the affected Board members of Oando Plc,
- The convening of an Extra-Ordinary General Meeting on or before July 1, 2019, to appoint new directors,
- 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,
- Bar of the Group Chief Executive Officer (GCEO) and the Deputy Group Chief Executive Officer (DGCEO) of Oando Plc. from being directors of public companies for a period of five (5) years.
Oando is of the view that these alleged infractions and penalties are unsubstantiated, ultra vires, invalid and calculated to prejudice the business of the Company. 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.
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.”