Oando Suffers Share Price Drop After SEC Action

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Oando Plc's share price had dropped by 9.52 per cent on Monday, after the Securities and Exchange Commission ordered the resignation of the company's Group Chief Executive Officer and other affected board members.

SEC also made an announcement on Sunday night that it had set up an interim management team, headed by a former Managing Director of Shell Petroleum Development Company, Mr. Mutiu Sunmonu, to oversee the affairs of Oando.

It said the term would conduct an extraordinary general meeting on or before July 1, 2019 to appoint new directors to the board of Oando who would subsequently select a management team for the company.

The company's staff members were forced to stay away from work on Monday as policemen stormed the Head Office of the company in the morning.

The Oil firm emerged the fourth biggest loser at the close of trading on the floor of the Nigerian Stock Exchange as it share price fell by N0.40 to N3.80.

SEC announced on Friday, the conclusion of the investigation of Oando and barred the GCEO, Mr. Wale Tinubu and the Deputy Group Chief Executive Officer of the company, Mr. Omamofe Boyo, from directors of public companies for a period of five years.

The Commission said findings from the forensic audit 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 disbursement to directors and management of the company, related party transactions not conducted at arm's length, among others.

But Oando said the " alleged infractions and penalties are unsubstantiated, ultra vires, invalid and calculated to prejudice the business of the company."


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