Banking & Finance Economy

Oando saga: SEC bars Wale Tinubu from being public company director 5 years

Avatar
Written by Maritime First

…As NBS says Bank’s e-payments hit N34.02trn in Q1, 2019***

After over a year of forensic audit, the Securities and Exchange Commission (SEC) has concluded investigation of Oando Plc and barred the Group Chief Executive Officer, Mr Wale Tinubu , from being a director of a public company  for five years.

In a statement signed by its Head of Corporate Communications,  Mrs Efe Ebola, SEC said it also barred Oando’s Deputy Group Chief Executive Officer (DGCEO) from being a director of a public company for five years.

The DGCEO is Mr Omamofe Boyo.

The newmen report that SEC in March 2018 announced the commencement of audit of Oando’s  account.

The commission said that it appointed Deloite Nigeria to proceed with the forensic audit.

In the statement, the commission also directed resignation of the affected board members,  and called on the company to convene an extra-ordinary general meeting on or before July 1, to appoint new directors.

The commission said that these and others were part of measures to address identified violations in the company.

“Following the receipt of two petitions by the commission in 2017, investigations were conducted into the activities of Oando Plc (a company listed on the Nigerian and Johannesburg Stock Exchanges).

“Certain infractions of securities and other relevant laws were observed.

”The commission further engaged Deloitte & Touche to conduct a forensic audit of the activities of Oando Plc.

“The general public is hereby notified of the conclusion of the investigations of Oando Plc,” it said.

According to SEC, findings from the audit revealed infractions such as false disclosures, market abuses, misstatements in financial statements, internal control failures and corporate governance lapses stemming from poor board oversight, among others things.

It  added that the forensic audit showed 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 SEC also directed the payment of monetary penalties by the company and affected individuals and directors, and refund of improperly disbursed remuneration by the affected board members to the company.

As required under Section 304 of the Investments and Securities Act, 2007, the commission said it would refer all issues with possible criminality to the appropriate prosecuting authorities.

The commission said that other aspects of the findings would be referred to the Nigerian Stock Exchange, Federal Inland Revenue Service and the Corporate Affairs Commission.

“The commission is confident that with the implementation of the above directives and introduction of some remedial measures, such unwholesome practices by public companies would be significantly reduced.

“Therefore, in line with the Federal Government’s resolve to build strong institutions, boards of public companies are enjoined to properly perform their  duties as required under extant securities laws,” it said.

It said that SEC, as the apex regulator of the Nigerian capital market, would maintain zero tolerance to market infractions.

It also reiterated commitment to ensuring fairness, integrity, efficiency and transparency of the securities market, thereby strengthening investor protection.

In the meantime, a total of 557,083,712 electronic-payment transactions valued at N34.02 trillion were recorded in selected banks across the country in the first quarter, 2019, Nigeria’s statistics bureau has said.

The National Bureau of Statistics (NBS) said this in a report on Selected Banking Sector Data: Sectorial Breakdown of Credit, ePayment Channels and Staff Strength data posted on its website.

It said Nigeria Inter-Bank Settlement System (NIBSS) Instant Payment (NIP) transactions dominated the volume of transactions recorded with 232,816,102 volume of NIP transactions valued at N24.17 trillion were recorded within the period under review

It, however, said that in terms of credit to the private sector, the total value of credit allocated by the banks stood at N15.21 trillion as at first quarter 2019.

It said the Oil and Gas and Manufacturing sectors got credit allocation of N3.49 trillion and N2.23 trillion respectively to record the highest credit allocation as at the period under review.

Also, the total number of staffers of the banks increased by 0.33 per cent quarter-on-quarter from 104,669 in fourth quarter, 2018 to 105,017 in first quarter, 2019.

 

 

 

About the author

Avatar

Maritime First