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UPDATE 2-CEO of Nigeria's Oando gets five-year director ban - watchdog

Published 31/05/2019, 20:49
UPDATE 2-CEO of Nigeria's Oando gets five-year director ban - watchdog
SHEL
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OANDO
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(Adds Oando CEO comment, changes dateline)
By Alexis Akwagyiram
LAGOS, May 31 (Reuters) - Nigeria's financial watchdog said
on Friday it had barred the CEO of oil firm Oando OANDO.LG ,
Wale Tinubu, from directing public companies for five years over
financial infractions - though he dismissed the charges as
unsubstantiated.
Nigeria's Securities and Exchange Commission (SEC) said it
had found "certain infractions of securities and other relevant
laws", during an investigation into the company.
Those included: "false disclosures, market abuses,
misstatements in financial statements, internal control failures
and corporate governance lapses," the SEC added in a statement.
The commission also listed "poor board oversight, irregular
approval of directors' remuneration, unjustified disbursements
to directors and management of the company (and) related party
transactions not conducted at arm's length."
The watchdog said it had ordered a number of Oando board
members to resign and refund "improperly disbursed remuneration"
to the company.
The company and some unnamed individuals and directors would
also have to pay financial penalties, it added, without going
into further details.
Tinubu said he had been shocked by the statement. "Oando is
of the view that these alleged infractions and penalties are
unsubstantiated (and) invalid," he told Reuters.
The company "was not given the opportunity to defend itself,
see, review and respond to the forensic audit report" that the
SEC produced, he added.
Oando has in recent years transformed itself from a fuel
retailer to an oil producer competing with multinationals such
as Shell RDSa.L and Exxon Mobil XOM.N , with its growth
largely funded by debt.

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