BUSINESS: Oando: Our Action Aimed At Protecting Investors – SEC
The Securities and Exchange Commission (SEC) on Sunday said that Oando
Plc was given sufficient opportunity of being heard before they were penalised.
The commission said in Lagos that there were various opportunities by the
company to defend themselves during the investigation by SEC and during the
forensic audit.
“The attention of SEC has been drawn to various reports questioning the
regulatory authority of the SEC, and insinuating lack of due process in the
investigations of Oando Plc.
“To put the records straight, SEC hereby states that fair hearing is a paramount
and fundamental principle which the Commission as a law abiding agency
adheres to in all its investigative processes.
“In the course of the investigations, communications e.g. letters and phone
calls were exchanged and meetings held between the commission and Oando
Plc, requesting for its comments and explanations on issues relating to the
investigations.
“The findings of the commission was communicated to the Group Chief
Executive Officer (GCEO) of Oando Plc by a letter dated July 10, 2017,” SEC
said in a statement by Mrs Efe Ebelo, its Head, Corporate Communications and
made available to the News Agency of Nigeria (NAN)
The commission said it subsequently engaged Deloitte & Touche to conduct a
Forensic Audit of the activities of Oando Plc.
“In the course of conducting the forensic audit, Deloitte & Touche held regular
sessions with members of the board and senior management of Oando Plc, and
afforded them the opportunity to provide explanations on issues relating to the
audit.
“The commission confirms that Oando Plc was given sufficient opportunity of
being heard and accorded several opportunities to rebut the issues revealed by
the investigation.
“The responses given by Oando Plc, were, however, considered unsatisfactory;
prompting, the decision by the Commission to penalise the company and some
of the individuals related to it for violations of securities laws.
“The actions of the commission were properly effected pursuant to the
provisions of the Investments & Securities Act (ISA) 2007 and the SEC Rules
and Regulations made pursuant to the ISA 2007,” SEC said.
It added that these facts had been properly articulated in the court process it
filed at the Federal High Court in response to the suit instituted by the Group
Chief Executive Officer and Deputy Group Chief Executive Officer of Oando Plc.
“As the apex regulator of the Nigerian capital market, the commission has a
mandate to protect investors,” it said.
SEC noted that its recent action on Oando Plc aligned with the above cardinal
mandate.
It said that the directive for the removal of persons from the board of Oando Plc
and the appointment of an interim management team to temporarily steer the
affairs of the company was to protect investors and preserve stakeholder value.
SEC said that failure or refusal of the commission to act in the face of the
serious issues thrown up by the investigations or to reverse its directive would
undermine the Federal Government’s agenda to build strong institutions.
NAN reports that SEC on June 2, following the outcome of its forensic audit
constituted an Interim Management team to be headed by Sunmonu for
embattled Oando Plc.
It noted that Sunmonu would oversee the affairs the company and conduct an
Extra Ordinary General Meeting on or before July 1, to appoint new board of
directors.
The regulatory body also said that appointed new board of directors at the
meeting would subsequently select a management team for Oando Plc.
The commission, however, reiterated its commitment to maintaining the
integrity of the market.
But the Federal High Court Lagos on June 3 granted an interim injunction to the
embattled management of Oando restraining SEC from executing an interim
management in the company.
The interim injunction followed an application filed by Messrs Jubril Adewale
Tinubu, embattled GCEO and Omamofe Boyo, for the enforcement of their
fundamental human rights.
It also restrained the commission from imposing a fine of N91.13 million on
Tinubu and barring him and Boyo from being directors of public companies for
five years.
Plc was given sufficient opportunity of being heard before they were penalised.
The commission said in Lagos that there were various opportunities by the
company to defend themselves during the investigation by SEC and during the
forensic audit.
“The attention of SEC has been drawn to various reports questioning the
regulatory authority of the SEC, and insinuating lack of due process in the
investigations of Oando Plc.
“To put the records straight, SEC hereby states that fair hearing is a paramount
and fundamental principle which the Commission as a law abiding agency
adheres to in all its investigative processes.
“In the course of the investigations, communications e.g. letters and phone
calls were exchanged and meetings held between the commission and Oando
Plc, requesting for its comments and explanations on issues relating to the
investigations.
“The findings of the commission was communicated to the Group Chief
Executive Officer (GCEO) of Oando Plc by a letter dated July 10, 2017,” SEC
said in a statement by Mrs Efe Ebelo, its Head, Corporate Communications and
made available to the News Agency of Nigeria (NAN)
The commission said it subsequently engaged Deloitte & Touche to conduct a
Forensic Audit of the activities of Oando Plc.
“In the course of conducting the forensic audit, Deloitte & Touche held regular
sessions with members of the board and senior management of Oando Plc, and
afforded them the opportunity to provide explanations on issues relating to the
audit.
“The commission confirms that Oando Plc was given sufficient opportunity of
being heard and accorded several opportunities to rebut the issues revealed by
the investigation.
“The responses given by Oando Plc, were, however, considered unsatisfactory;
prompting, the decision by the Commission to penalise the company and some
of the individuals related to it for violations of securities laws.
“The actions of the commission were properly effected pursuant to the
provisions of the Investments & Securities Act (ISA) 2007 and the SEC Rules
and Regulations made pursuant to the ISA 2007,” SEC said.
It added that these facts had been properly articulated in the court process it
filed at the Federal High Court in response to the suit instituted by the Group
Chief Executive Officer and Deputy Group Chief Executive Officer of Oando Plc.
“As the apex regulator of the Nigerian capital market, the commission has a
mandate to protect investors,” it said.
SEC noted that its recent action on Oando Plc aligned with the above cardinal
mandate.
It said that the directive for the removal of persons from the board of Oando Plc
and the appointment of an interim management team to temporarily steer the
affairs of the company was to protect investors and preserve stakeholder value.
SEC said that failure or refusal of the commission to act in the face of the
serious issues thrown up by the investigations or to reverse its directive would
undermine the Federal Government’s agenda to build strong institutions.
NAN reports that SEC on June 2, following the outcome of its forensic audit
constituted an Interim Management team to be headed by Sunmonu for
embattled Oando Plc.
It noted that Sunmonu would oversee the affairs the company and conduct an
Extra Ordinary General Meeting on or before July 1, to appoint new board of
directors.
The regulatory body also said that appointed new board of directors at the
meeting would subsequently select a management team for Oando Plc.
The commission, however, reiterated its commitment to maintaining the
integrity of the market.
But the Federal High Court Lagos on June 3 granted an interim injunction to the
embattled management of Oando restraining SEC from executing an interim
management in the company.
The interim injunction followed an application filed by Messrs Jubril Adewale
Tinubu, embattled GCEO and Omamofe Boyo, for the enforcement of their
fundamental human rights.
It also restrained the commission from imposing a fine of N91.13 million on
Tinubu and barring him and Boyo from being directors of public companies for
five years.
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