Oando: Pressure mounts on SEC over due process
NIGERIA’S apex capital market regulator, Securities and Exchange Commission (SEC) has come under pressure to review the process of its investigation, adjudication and conclusions on the alleged corporate governance abuses at Oando Plc.
SEC had on May 31, 2019 released a statement indicting the management and board of Oando of sundry corporate governance abuses and infractions of the relevant capital market laws. SEC barred the Group Chief Executive Officer (GCEO) and the Deputy Group Chief Executive Officer (DGCEO) of Oando from being directors of public companies for a period of five years. SEC also ordered certain members of board of directors of Oando to resign.
SEC also directed the payment of monetary penalties by the company and affected individuals and directors, and refund of improperly disbursed remuneration by the affected board members to the company. SEC directed the convening of an Extra-Ordinary General Meeting on or before July 1, 2019, to appoint new directors.
According to the SEC, following the receipt of two petitions by the Commission in 2017, investigations were conducted into the activities of Oando. Certain infractions of relevant laws were observed. The Commission further engaged Deloitte & Touche to conduct a Forensic Audit of the activities of Oando.
But shareholders and stakeholders have faulted the process adopted by SEC, accusing SEC of bias and lack of fairness.