Nigeria’s Securities and Exchange Commission, SEC has ordered the group chief executive officer of Oando Plc, Wale Tinubu and his deputy, Omemofe Boyo to step down from the board of the oil company. The commission also directed that the duo be barred from being appointed directors of public companies for a period of five years.
According to Guardian, the commission said that the duo and the oil company committed among other infractions, “false disclosure” and “misstatements in financial statements”. It further revealed that it will refer “possible criminality to the appropriate criminal prosecuting authorities.
SEC added that the directors must be replaced through an extraordinary general meeting on or before July 1, 2019.
The disciplinary actions followed the investigations of two petitions by the commission in 2017 about “certain infractions of securities and other relevant laws” perpetrated by Oando. SEC said it engaged Deloitte & Touche to carry out a forensic audit of Oando’s books.
SEC statement explained that “the findings from the 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 disbursements to directors and management of the company, related party transactions not conducted at arm’s length, amongst others”.
The Commission said it was confident that the implementation of punitive measures and introduction of some remedial measures will reduce “unwholesome practices by public companies adding that Tinubu, Boyo and Oando are also expected to monetary penalties and also refund improperly disbursed remuneration.