The Securities and Exchange Commission (SEC) has barred the Group Chief Executive Officer of Oando Plc, Wale Tinubu, and his deputy, Omamofe Boyo, from being directors of public companies for a period of five years.
It also ordered that an extra-ordinary general meeting be convened on or before July 1, 2019, to appoint new directors.
This follows findings from their two year investigation of petitions against Oando Plc.
In a statement on Friday, the SEC said all affected board members have also be asked to resign.
The statement read: “Following the receipt of two petitions by the Commission in 2017, investigations were conducted into the activities of Oando Plc (a company listed on the Nigerian and Johannesburg Stock Exchanges).
“Certain infractions of Securities and other relevant laws were observed. The Commission further engaged Deloitte & Touche to conduct a forensic audit of the activities of Oando Plc.
“The general public is hereby notified of the conclusion of the investigations of Oando Plc.
“The findings from the report revealed serious infractions such as false disclosures, market abuses, misstatements in financial statements, internal control failures, and corporate governance lapses stemming from poor board oversight, irregular approval of directors’ remuneration, unjustified disbursements to directors and management of the company, related party transactions not conducted at arm’s length, amongst others”.
The 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.
As required under Section 304 of the Investments and Securities Act, (ISA) 2007, the Commission said it would refer all issues with possible criminality to the appropriate criminal prosecuting authorities.
In addition, the SEC stated that other aspects of the findings would be referred to the Nigerian Stock Exchange (NSE), Federal Inland Revenue Service (FIRS), and the Corporate Affairs Commission (CAC).
“The Commission is confident that with the implementation of the above directives and introduction of some remedial measures, such unwholesome practices by public companies would be significantly reduced.
“Therefore, in line with the Federal Government’s resolve to build strong institutions, Boards of public companies are enjoined to properly perform their fiduciary duties as required under extant securities laws” the statement added.
It is not clear if this decision is influenced by the recent court ruling reinstating SEC DG, Munir Gwarzo, who had a running battle before his ouster by then Finance Minister, Kemi Adeosun, a move many suspected was due to some alliance between Oando leadership and Adeosun.