On Friday, May 31, 2019, the Securities and Exchange Commission announced it had concluded a two-year investigation into activities of Oando plc following the receipt of two petitions from Ansbury Investments Inc. and Alhaji Barau Mangal (the “Petitioners”) who raised certain concerns regarding Oando Plc. According to SEC, certain infractions of Securities and other relevant laws were observed.
Consequently, the Commission directed penalties as follows:
- Resignation of the affected Board members of Oando Plc,
- The convening of an Extra-Ordinary General Meeting by 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.
In its response, Oando plc stated that it was of the view that these alleged infractions and penalties were unsubstantiated, ultra vires, invalid and calculated to prejudice the business of the Company. The Company stated that it was not given the opportunity to see, review and respond to the forensic audit report and so it
was unable to ascertain what findings (if any) were made in relation to the alleged infractions and defend itself accordingly before the SEC. The Company further added that it had the right to take all legal steps to protect its business and assets whilst remaining committed to acting in the best interests of all its shareholders.
Further to its Press Release on Oando Plc, the Commission informed the public of the constitution of an Interim Management Team headed by the former managing director of Shell Petroleum Development Company, Mr Mutiu Olaniyi Adio Sunmonu CON, to oversee the affairs of Oando Plc; conduct an Extra Ordinary General
Meeting on or before July 1, 2019; and to appoint new Directors to the Board of the Company, who would subsequently select a Management Team for Oando Plc.