The Securities and Exchange Commission (SEC) has accused the management of embattled Oando Plc outright disregard for laid down rules and regulations in its activities.
The revelations are coming even as stakeholders await the outcome of the Forensic Audit of the company’s accounts.
The allegations of the unwholesome practices perpetuated by the company are contained in a letter addressed to the group chief executive officer, Adewale Tinubu.
The letter dated October 17, 2017, and titled, Re-Serious Concern To Corporate Governance Existence, Gross Abuse of Corporate Governance And Financial Mismanagement In Oando Plc” was signed by SEC’s Head, Legal Department, Mrs Braimoh Anastsia.
SEC in the said letter alleged that Oando’s 2013 and 2014 Audited Financial statement contains misstatements arising from the OEPL transaction.
“Following the structuring of the OEPL transaction in contravention of the ISA 2007, Oando Plc recorded a profit of about N6 Billion from the sale of OEPL that erased the operating loss of N4.68 Billion leading to a profit of N1.4 Billion for the year 2013.
“The company subsequently declared dividends from the profit. Having admitted that the action was in breach of the ISA 2007, Oando Plc restated its 2013 & 2014 Audited Financial Statements which contained material false and misleading information contrary to Section 60(2) of the ISA 2007.
On corporate governance, SEC letter stated, “The commission finds from the Corpororate Governance return submitted by the company for the period ended December 31st, 2016 that the renumeration of the Group Executive Officer (GCEO) and the Deputy GCEO were approved by the Board while the GCEO was responsible for fixing the renumeration of other Executive Directors which is in violation of part 3, 14, 3 of the SEC Code of Corporate Governance”.
Other areas highlighted by the commission includes, Breach of ISA 2007 on Disposal of Oando Exploration & Production Limited (OEPL) by Oando Plc 2013.
It explained that the disposal of Oando Exploration Production Limited (OEPL) to Green Park Management Limited was done without the prior approval of the Commission.
“Breach of ISA 2007: Misstatements in the 2013 and 2014 Audited Financial statement of Oando Plc arising from the OEPL transaction Following the structuring of the OEPL transaction in contravention of the ISA 2007, Oando Plc recorded a profit of about N6 Billion from the sale of OEPL that erased the operating loss of N4.68 Billion leading to a profit of N1.4 Billion for the year 2013. The company subsequently declared dividends from the profit. Having admitted that the action was in breach of the ISA 2007, Oando Plc restated its 2013 & 2014 Audited Financial Statements which contained material false and misleading information contrary to Section 60(2) of the ISA 2007.
“Breach of ISA on Misleading Information contained in Oando Plc’s 2014 Rights Issue Circular
According to SEC, the 2014 Rights Issue Circular of Oando Plc contained information relating to the profit reported by it in 2013 arising from the sale of OEPL. Consequently, the said Rights Issue circular contained material misleading information. “This action amounts to a violation as contained in Section 85(1), 86(1) and 87(1) of the ISA 2007.”
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