Court Flings Oando Suit Against SEC

By Dipo Olowookere

A suit filed by Oando Plc against the Securities and Exchange Commission (SEC) has been thrown out by Justice Folashade Giwa-Ogunbanjo of the Federal High Court sitting in Abuja.

The judge, while delivering a judgement on the matter on Thursday, said her court lacks the jurisdiction to entertain the suit and directed the company to file its case before the Investment Securities Tribunal (IST), which she said was the appropriate court to hear the matter.

Oando had gone to the court to argue that its fundamental rights were trampled upon by the apex regulatory agency in the Nigerian capital market.

SEC had on May 31, 2019, directed a few members on the board of Oando to resign following the outcome of its investigations into allegations of ‘serious infractions by the company.’

The affected board members were Group Chief Executive, Mr Adewale Tinubu; the Deputy Group Chief Executive, Mr Omamofe Boyo; and the Group Chief Financial Officer, Mr Olufemi Adeyemo.

Oando, which was of the opinion that these alleged infractions and penalties meted out by the regulator were unsubstantiated, ultra vires, invalid and calculated to prejudice the business of the company, challenged the decisions in court.

But the court said the matter should be heard by IST and again, Oando is of the view that the judgement was misconceived and as such has appealed the decision on the grounds that the powers conferred by the Constitution of Nigeria on its citizens to enforce their fundamental rights supersede the provisions of the Investment and Securities Act 2007.

As a result, the energy firm has filed applications for stay of execution as well as an injunction pending appeal in respect of the judgement of Justice Giwa-Ogunbanjo in relation to SEC’s May 31, 2019, letter to Oando.

In view of this, Oando believes SEC is restrained from acting on its findings and carrying out any of the sanctions specified in its May 31, 2019, letter as the status quo that existed before Thursday’s ruling remains unchanged and its current management team remains in place.