A group of stakeholders in the capital market, Consolidated Capital Market Stakeholders Forum (CCMSF), has stated that the Securities and Exchange Commission (SEC) followed due process in the suspension of Directors Of Oando Plc.
The Group in a statement signed by Umar Usman, urged Oando directors to provide credible evidence refuting the findings of the forensic audit instead of whipping up sentiments.
According to Usman, There were several corporate governance lapses stemming from poor board oversight, which includes: irregular approval of Director’s remuneration, director’s participation in matters in which they had declared interest, unjustified disbursements to directors and management of the company, failure of the audit committed to hold meetings with management, internal auditors and external auditors.
Usman said Oando Plc also failed to establish an effective system of internal controls as required under section 61 of the ISA 2007, over its financial reporting thereby compromising the integrity of the company’s financial controls and reporting as revealed by the misstatements In the financial statements, high number of related party transactions and unjustified disbursements to directors.
He stated that Oando Plc reported the sale of its subsidiary, Oando Exploration and Production Limited (OEPL) to Green Park Management Limited without obtaining the approval of the commission, (In violation of the provisions of the Investment and Securities Act (ISA 2007) and the consent of the minister of petroleum (as required under the Petroleum Act, 1969).
“The purported sale of OEPL enabled Oando Plc to report a profit instead of a loss, thereby misstating its financial statement in 2013 and 2014 and consequently misleading investors. This “Fictitious” profit reporte