Dipo Olowookere
By Dipo Olowookere
Foremost Nigerian businessman, Mr Atedo Peterside, has shared his views on the action taken by the Securities and Exchange Commission (SEC) on one of the companies listed on the Nigerian Stock Exchange (NSE), Oando Plc, last Friday.
The capital market regulator had ordered the resignation of some board members of Oando Plc and asked the firm to convene an Extra-Ordinary General Meeting on or before July 1, 2019, to appoint new directors.
It further directed the company, affected individuals and directors to pay monetary penalties, also asking for refund of improperly disbursed remuneration by the affected board members to the company and barring the company’s Group Chief Executive Officer (GCEO) and the Deputy Group Chief Executive Officer (DGCEO) from being directors of public companies for a period of five years.
This followed outcome of the much-awaited forensic audit done on the leading energy firm last year after two shareholders, via petitions, accused top members of the management of market infractions.
Last week, SEC said after the forensic audit, it found out that some members of the board altered the company’s financial statements so as to deceive investing public and its shareholders.
According to the commission, it discovered “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.”
Oando, while reacting to the sanctions on its board members, accused the apex regulator of being biased, emphasising that it was not given a chance to see results of the forensic audit or given an opportunity to defend itself concerning the alleged infractions noticed in its books.
Staying on the side of Oando, Mr Peterside, whose company, Stanbic IBTC Holdings, is also listed on the stock exchange, faulted the decision of SEC not to allow the oil firm see the results despite being the one responsible for payment of the exercise.
“On Oando, what I don’t understand is why the SEC would not give the findings of the Forensic Audit to Oando and give them an opportunity to defend themselves?” he said.
Mr Peterside charged SEC to make the findings public so as to be fair to all.
“The findings of the Forensic Audit should be made public alongside Oando’s responses so we can all judge for ourselves?” the economist posted on his official Twitter page on Saturday afternoon.
Mr Peterside is the Chairman of Cadbury Nigeria Plc and also sits on the Board of Directors of Flour Mills of Nigeria Plc, Nigerian Breweries Plc and Unilever Nigeria Plc.
