SEC, Oando reach out-of-court settlement on dispute after two years

Oando Plc has reached an agreement with the Securities and Exchange Commission (SEC) to drop all charges relating to operational breaches.

Oando and SEC have been involved in a legal battle since 2019 after the energy company was accused of committing “serious infractions.”

The Commission had in a letter dated March 31, 2019, and addressed to Oando gave certain directives and imposed sanctions on the company after it conducted investigation on two petitions filed against the integrated oil firm in 2017.

Oando and some of its directors later challenged the directives at the Federal High Court, Lagos.

But after two years, the company agreed to reach a settlement with SEC on certain terms which include immediate withdrawal of all legal actions filed against the commission, payment of all monetary penalties stipulated in the letter of May 31, 2019; and a written undertaking to implement corporate governance improvements.

Oando is also require to submit quarterly reports on its compliance with the terms of the settlement agreement; the Investments and Securities Act, 2007; the SEC Rules and Regulations; the National Code of Corporate Governance and the SEC Guidelines to the Code of Corporate Governance.

In a circular released on Monday, SEC said the decision to settle the matter out of court was in the best interest of the company, its employees, shareholders and the capital market.

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The circular read: “In Pursuant to the powers conferred on the Securities and Exchange Commission (the Commission) by the Investments and Securities Act 2007, and the Rules and Regulations made pursuant thereto, the Commission on Thursday, July 15, 2021, entered into a Settlement with Oando Plc (the Company)

“The Company and some of its affected directors had challenged the said directives in a series of suits commenced at the Federal High Court. However, the Company subsequently approached the Commission for a settlement of the matter, and both parties have now agreed to settle in consideration of the impact that a further prolonged period of litigation would have on the Company’s shareholders and the value of their investments as well as remedial measures to be put in place by the Company in enhancing its corporate governance practices and strengthening its internal control environment.

“The Commission reiterates its commitment to ensuring fairness, transparency, and integrity of the capital market, and upholds its mandate to protect investors.”

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