Oando Plc faults SEC’s investigation, to challenge outcome

Oil production and marketing company, Oando PLC, has responded to its investigation and sanctions announced by the Securities and Exchange Commission (SEC), which the organization described as “unsubstantiated, ultra vires, invalid and calculated to prejudice the business of the Company.”

The regulator had earlier in the day issued a statement in which it announced the conclusion of its investigations into the activities of Oando Plc based on petitions received two years ago. SEC subsequently pronounced some wide-ranging stiff sanctions on the company.

However, the company, in a statement issued in Lagos on Friday May 31, 2019, said it will take all legitimate measures to protect its business and safeguard the interests of all its shareholders.

Its statement said, “Our attention has been drawn to a press release published by the Securities and Exchange Commission (SEC) on Friday, May 31, 2019 “Press Release on “Investigation of Oando PLC (the Company)”.

“In the statement, the Commission confirms the conclusion of its investigations and that the findings from the report reveal serious infractions by the Company and as part of measures to address these violations, the Commission has directed penalties as follows:

1. Resignation of the affected Board members of Oando Plc,
2. The convening of an Extra-Ordinary General Meeting on or before July 1, 2019, to appoint new directors,
3. Payment of monetary penalties by the company and affected individuals and directors,
4. Refund of improperly disbursed remuneration by the affected Board members to the company,
5. 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.”

“Oando is of the view that these alleged infractions and penalties are unsubstantiated, ultra vires, invalid and calculated to prejudice the business of the Company. The Company has not been given the opportunity to see, review and respond to the forensic audit report and so is unable to ascertain what findings (if any) were made in relation to the alleged infractions and defend itself accordingly before the SEC.”

“The Company reserves its rights to take all legal steps to protect its business and assets whilst remaining committed to act in the best interests of all its shareholders.”