Uche Usim, Abuja
Hearing on the protracted feud between the Securities and Exchange Commission (SEC) and Oando Plc will commence tomorrow (Monday, June 24) at the Federal High Court, Lagos and will be presided over by Justice Ayokunle Faji. The court will hear arguments between the lawyers of sacked Group Managing Director of Oando Plc, Jubril Adewale Tinubu and his long time deputy, Omamofe Boyo and SEC. The Commission had on Friday, May 31, released a report of the forensic audit carried out by Deloitte and Touche, which allegedly indicted the oil firm of various grievous infractions.
These include: “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, among others”.
The Commission therefore, ordered the resignation of some board members, while barring Tinubu and Boyo, from being directors of public companies for a period of five years, based on the allegation which the company’s management described as “unsubstantiated, ultravire, invalid and calculated to prejudice the business of the company.” Oando said its management was not afforded “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.” But the commission has since argued to the contrary, going ahead to appoint an interim management committee headed by Mutiu Sunmonu, a former head of Shell Nigeria. This prompted the Oando management to obtain an injunction stopping the enforcement of the SEC’s orders, for which the commission has filed preliminary objection as well as counter-affidavit against the fundamental rights enforcement suit which Tinubu and Boyo, as applicants filed against it. Meanwhile, the Federal Government will tomorrow, inaugurate the board of the Securities and Exchange Commission (SEC) which will be chaired by Mr. Olufemi Lijadu. The constitution of the new board of the commission is coming four years after President Muhammadu Buhari sacked the former SEC board headed by Mr. Peter Obi. A senior management source, who pleaded anonymity confirmed the constitution and inauguration in Lagos. The source said that the inauguration would take place at the Ministry of Finance Headquarters, Abuja, and would be conducted by the permanent secretary.