SEC’s Action Not In Line With Global Standards – Oando Shareholders

Some shareholders of Oando Plc have said that the recent actions
of the Securities and Exchange Commission (SEC) which ordered the
group chief executive officer of the company, Mr Wale Tinubu and
the deputy group chief executive officer, Mr Omamofe Boyo to resign
from the board of directors of the company as well as other members
of the board are not in line with global best practices.

Last Friday, SEC barred Tinubu and Boyo from being directors of
any public company in Nigeria for five years. The commission
conveyed the decision in a statement signed by Mrs Efe Ebelo, its
head of Corporate Communications. SEC had in March 2018 announced
the commencement of audit of Oando Plc’s account.

Speaking on behalf of the Sokoto Shareholders, Alhaji Kabiru
Tambari said: ‘‘We are not happy at all that has happened. Wale
Tinubu and his management team have put their resources, energy,
time, to keep Oando moving forward. They should think of the effect
their actions will have on the market. If this continues, the
company will not be able to pay salaries, the shares will be
devalued badly leaving us in a precarious position. We implore the
Court to look into the matter carefully and adjudicate
accordingly.”

Also, the CEO, Cowrie Asset Management, Johnson Chukwu, speaking
on a national television said “For the past four years, the SEC has
not had a board and the absence of an oversight body is a major
constraint to a regulator like SEC. What they have done tied their
hands to the back. They are trying to correct and implement
corporate governance in a company when they themselves do not have
a corporate governance position or structure of their own, coupled
with other internal issues that they have.”

National chairman, New Dimension Shareholder Association,
Patrick Ajudua said that the SEC’s findings on Oando speak volumes.
‘‘As shareholders of the company, we are more interested in the
protection of minority shareholders, the development and protection
of the capital market. The consequences of these far reaching
directives from the regulator will have an adverse effect on the
share price of the company both locally and internationally, market
integrity, rule of law and expected returns on investment. I
believe that the SEC as presently constituted have no power to
issue such far reaching directives without the consent of a board.
Disappointedly, the regulator have been operating without a Board
for more than 4 years and as such is like a car without a pilot, a
human being with a body but no head.

‘‘I strongly support the steps taken by Oando in seeking legal
redress and justice. SEC as the apex regulator of capital market
must be seen to operate within the rule of law, you can’t beat a
child and ask him not to cry. Efforts must be made to give the
company the opportunity to defend the allegations and where they
are found wanting necessary sanction can be made with human face as
to err is human and to forgive is divine. Minority shareholders
must not be made to suffer as a result of this unhealthy
fight.”

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