FOLLOWING the Securities and Exchange Commission’s conclusion of its investigation into the financial irregularities by Oando PLC, it announced an interim management team led by Mutiu Sunmonu to take over the helm of affairs that would subsequently appoint a substantive management team.
In its announcement via its Twitter handle on Monday, the commission implemented its earlier directive by appointing Mutiu Sunmonu to take over the management of the oil firm after over – deducting withholding tax from dividends paid to shareholders amongst other tax infractions.
Withholding tax is an informal tax that is usually deducted from fees to be paid by a company that engages the service of another company.
SEC had announced the conclusion of the investigation on Oando PLC and ordered the Group Chief Executive Officer of the company, Wale Tinubu, and other affected board members to resign.
It also barred Tinubu and the Deputy Group Chief Executive Officer of the company, Omamofe Boyo, from being directors of public companies in the country for a period of five years.
In a statement issued by the commission, it stated that an extraordinary meeting to announce the appointment of new directors into the board of the company should take place on or before July 1, 2019.
1/2 Further to our Press Release on Oando Plc, dated May 31, 2019, the Commission hereby informs the public of the constitution of an Interim Management Team headed by Mr. Mutiu Olaniyi Adio Sunmonu CON, to oversee the affairs of Oando Plc… pic.twitter.com/irgQuseoB6
— SEC Nigeria (@SECNigeria) June 3, 2019
In response to SEC’s decision, Ayotola Jagun, on Monday in a tweet on behalf of the company conveyed its stand on the issue urging the public to disregard the decisions of apex capital market regulator.
It affirmed that SEC was embarking on a smear campaign to damage the reputation of the company saying “the alleged infractions and penalties are unsubstantiated, ultra lies, invalid and calculated to prejudice the business of the company.”
This information is incorrect. Oando’s Management Team and Board of Directors have not changed. We advise you to refrain from sharing incorrect information or reach out to the Company to verify information before dissipation.
— Oando PLC (@Oando_PLC) June 3, 2019
However, on Monday policemen had stormed Oando’s Wing Office Complex located at Ozumba Mbadiwe Avenue, Victoria Island, Lagos State denying the staff access to their offices at the directive of SEC.
The share price of Oando Plc also experienced a decline by 9.52 per cent in early trading on the Nigerian Stock Exchange, NSE, after the Securities and Exchange Commission, SEC, published its findings on Friday.