Frauds & Scandals | |
Frauds & Scandals | |
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Friday, February
26, 2021 / 08:39 AM / News / Header Image Credit: Financial Reporter
On Thursday, February 25,
2021 in a ruling presided over by Justice Giwa Ogunbanjo at the Federal High
Court, Abuja, the judge declined jurisdiction
to hear suits brought by Oando PLC and its directors against the Securities and
Exchange Commission (SEC). The judge
stated that the Investment and Securities Tribunal (IST) would be the
appropriate forum to hear the matter.
The
basis for the Court's decision is Section 36(2) of the Constitution which
allows aggrieved individuals to first approach any tribunal or administrative
agency to determine civil rights and obligations as long as that process and
the resulting decision is not final. The Court also reiterated that the IST has
primary jurisdiction over Oando and its directors in respect of capital market
issues and not the Federal High Court.
In July 2017 it came to
public attention that the SEC was investigating Oando PLC; a long drawn-out
investigation followed culminating in the notorious May 31, 2019 letter from
SEC to Oando finding them guilty of a number of infractions and imposing stiff
sanctions.
In response Oando and some
of its directors, filed suits against the regulator for not following due
process and a breach of their human rights to fair hearing. In addition to filing suits against the
regulator, Oando took out and was granted by the Federal High Court of Lagos an
injunction restraining the SEC from executing any of the sanctions in its May
31, 2019 letter.
An
Oando official has explained that as much as they respect the decision of the
court, the battle is far from over as in their opinion, this is still very much
a case for the judiciary and thus Oando has lodged an appeal with the courts in
Abuja, contesting the court's decision that the suits are best heard by the
IST. The belief being that justice will
only be served through the courts and not the IST as advised by the presiding
judge.
The
company and its affected directors argue that the powers conferred by the
Constitution of the Federal Republic of Nigeria on its citizens to enforce
their fundamental rights supersedes the provisions of the Investment and
Securities Act 2007.
They
have also filed an application for stay of execution as well as an injunction
pending appeal on the SEC's May 31, 2019 letter to the Company, and as such the
status quo that existed before today's ruling remains unchanged meaning nearly
2 years on SEC's hands are tied and they are still unable to implement
sanctions imposed on the company or its directors. It begs the question at what point does the
regulator decide to address this challenge in an alternative and more
productive manner.
But
Thursday's ruling and Oando's appeal is only the tip of the iceberg, 2021 has
kicked off with shareholders weighing into this long drawn-out battle. The shareholders have called on the SEC and Oando to settle the matter out of court, as the
tussle continues to impact their investments. Some shareholders have gone as
far as dragging both parties to court to seek an end to this impasse.
This
month, various factions of Oando's shareholders filed a case against the SEC in
the persons of Alhaji
Yakubu Gumel; Alhaji Kabiru Tambari, suing for himself and on behalf of the
Sokoto Zone Shareholders Association; Tunde Badmus, suing for himself and for
the benefits of Pacesetters Shareholders Association, at the Federal High Court
Kano.
The shareholders filed for an interim order
restraining SEC its agents or representatives from acting on its May 31, 2019
letter sanctioning the Management of Oando. The orders were granted on
Friday, February 19, 2021 and present in court were lawyers for both SEC and
the shareholders. The order restrains the SEC, its agents or anyone acting
on behalf of the commission from disturbing or meddling with the affairs,
management and activities of Oando PLC. It also restrains the SEC's purported
interim Management from meddling in the administration and activities of the
company as well as an order restraining SEC from interfering with the
shareholder's exercise and performance of their statutory powers and duties as
shareholders.
Alhaji Tambari Kabiru, one of the applicants, an Oando shareholder since 1991 explained why he decided to sue the apex regulator. He said "I'm not happy with the current state of my investment. I invested my money heavily with the hopes of capital appreciation and this has not been the case. This SEC and Oando case is affecting the value of our investment, it isn't appreciating, instead it gets worse each year. For over two years now we have been totally in the dark on our investment in Oando. Where in the world is this done? Oando's shares would have appreciated greatly if this issue wasn't hovering over our heads. Year on year, our investment has depreciated in value. We are tired! As a shareholder I am strongly behind the Management of Oando. Not everyone can withstand the backlash this crisis has put the Management through these past four years and still remain committed to doing the job. We have reached out to the SEC and appealed for a resolution, but they haven't listened to us, that's why we've taken this matter to court."
The court hearing between the SEC and aggrieved
shareholders in Kano has been adjourned to March 17, where it is hoped a
favorable ruling will be delivered by the court.
Amidst all of this was
good news for one shareholder. On
Tuesday, February 23, 2021 there was a court ruling in favor of an Oando
shareholder Engr. Patrick Ajidua. He had challenged the regulator in a
suit filed at the High Court of the FCT. He had challenged the SECs right to
prevent the convening of an Annual General Meeting as a breach of his right to
freedom of association.
In a hearing presided by
Honorable Justice O. A Musa, all cases filed were granted in favor of Engr.
Patrick. In summary the judge declared that the May 31, 2019 letter of
SEC to Oando sanctioning its management, as unconstitutional, null and void and
violation of Engr. Patrick's fundamental right to fair hearing and his human
right to receive information on the affairs of Oando and his interest and
shares in Oando and more importantly instituted that within 90 days of the ruling
Oando must convene an AGM for her shareholders.
The Securities and Exchange Commission
(SEC) has denied the claim by Engr Patrick Ajudua, that he won a court case
against the capital market apex regulator.
SEC disclosed in a statement it issued on Wednesday, February 24,
2021 that there was never a time it was served with court processes with
respect to the purported matter at the FCT High court.
It stated, "The attention of the Securities and Exchange Commission (the Commission) has been drawn to several publications in the media, where it is reported that a shareholder of Oando PLC, purportedly obtained a judgment from the Federal Capital Territory High Court against the Commission. The Commission wishes to inform the general public that it was never at any time served with court processes with respect to the purported matter at the FCT High court. The Commission will consequently take all necessary steps to verify and set aside the purported decision of the said Court."
This denial is a clear affront
to the Nigerian judiciary, implying that Honorable Justice O. A Musa who
presided over the case made a judgement without giving SEC the opportunity to
defend itself. This is contrary to court
documents that have been sighted which indicate that SEC was served processes
but did not appear in court. Once again
it seems the regulator is indifferent to shareholder investments or the
sentiments of the capital market and will doggedly continue to fight Oando PLC.
Related Reports
1. Memo to The Market:
The Oando Corporate Journey - At The Regulators Gate - Dec 10, 2017
2. Download Full (PDF) Report - Memo to The Market:
The Oando Corporate Journey - At The Regulators Gate - Dec 10, 2017
3. Download (PDF) Report - SEC Technical Committee
on Oando Plc 2017 -Dec 04, 2017
4. Review of the SEC Technical Committee
Recommendations, Opinion and Final Report
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on Oando
1. OANDO
Share Price up 10% off Positive Court Ruling as SEC Reacts to the Court
Judgement
2. Engr
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Shareholders Rights
3. Oando
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4. Oando
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5. OANDO
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6. Oando's
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11.
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12.
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14.
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15. Oando
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16.
OANDO
Declares N13.06bn PAT in Q3 2019 Results (SP:N3.40k)
17.
NSE
Reclassifies Oando Plc As Low Priced Stock
18.
NNPC,
NAOC and OANDO JV Makes Gas and Condensates Discovery
19.
Oando
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20.
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Oando
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22.
OANDO
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23.
Federal
High Court Adjourns SEC Vs Oando Case to July 22
24.
Deloitte
Issues Press Statement on OANDO Forensic Audit
25.
Oando PLC Responds
to SEC's Statement Regarding Fair Hearing in the Investigation of the Company
26.
Two
Weeks After: OANDO Shares Dropped By -7.14%, -22% YTD
27.
FHC
Lagos Adjourns Hearing Between Oando Plc's GCE and Deputy GCE and SEC
28. Oando
PLC's Official Response To SEC's Suspension Of Its 42nd AGM
29. SEC
Suspends OANDO's Prior Approved AGM Scheduled To hold on June 11, 2019
30. Oando
Update: SEC Aligns Principle Of Fair Hearing With Cooperation During
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31. One
Week After: OANDO Shares Dropped By -4.76% WoW, -20% YTD
32. Chief
Sena Anthony and Mr. Oghogho Akpata Resign From OANDO's Board Effective June
3rd, 2019
33. Oando
Share Price Drops 20% Off The Back Of SEC Investor Protection Moves
34. OANDO
Declares N4.63bn PAT in Q1'19 Results (SP:N4.85k)SEC
Appoints Interim Management Team For Oando Plc Headed By Mr. Mutiu Olaniyi Adio
Sunmonu
35. Post-Forensic
Exchanges: The SEC Letter to Oando Plc and The Oando Rebuttal
36. Oando
Challenges SEC's Ruling On The Outcome Of The Forensic Audit Into Oando PLC
37. SEC
Announces Far Reaching Decisions On The Investigation Of Oando Plc
38. Oando
Optimises Value From Midstream Business
39. OANDO
Declares N4.63bn PAT in Q1'19 Results (SP:N4.85k)
40. Oando
PLC Announces Divestment of its Residual 25% Interest in Axxela Limited
41. Oando's
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42. Oando
Plc Announces FYE 2018 Results, Posts N28.8 Billion Profit-After-Tax
43. OANDO
Declares N28.79bn PAT in 2018 Audited Results (SP:N5.65k)
44. Oando PLC Announces YTD September 2017 Results; Gives
Operational Highlights
45. Oando Plc state Positions on the Securities and Exchange
Commission Alleged Findings
46. Oando Secures Court Injunction, restraining SEC, NSE
47. Oando Shares Now Available for Trading, No Price Movement
During Technical Suspension
48. JSE Follows NSE, Suspends Trading in the Shares of Oando
Plc
49. Oando
Gives Holding Response on SEC's Directive to NSE to Suspend Trading of Its
Shares
50. Oando PLC's Official Statement on the SEC's Directive to
The NSE to Suspend Trading of Its Shares
51. NSE, SEC Confirm Decision To Suspend Trading On The Shares
of Oando Plc
52. Trading
on the Shares of Oando Plc Suspended; Reasons Unknown
53. Oando Gas & Power Rebrands as Axxela
54. House of Reps gives SEC Two weeks to submit Report on
Oando PLC
55. Oando Plc. - AGM Resolution
56. Oando Plc holds 40th AGM, engages Shareholders on the
Progress of its Restructuring Plan
57. Oando Plc's 40th AGM To Hold As Planned Following SEC
Confirmation
58. Oando Plc to Hold 40th AGM on Sept 11, 2017
59. Oando Plc Issues an Update on Claims of a SEC
Investigation
60. OANDO Declares N4.56bn Profit in Q2 2017
Results,(SP:N7.80k)
61. Oando Issues Press Release over SEC Investigation
62. Corporate Earnings for the Week Ending 140717 - UCAP
declares N1.99 billion Profit in Q2'17 Results
63. SEC Investigating Oando Plc
64. OANDO Plc Announces Closed Period
65. Oando Provides Clarifications on its Refinery Ambitions
66. OANDO Declares N1.71bn Profit in Q1 2017
Results,(SP:N5.80k)
67. OANDO Plc Announces Closed Period
68. Oando
Plc to Hold 2016 AGM on Tuesday 2nd August
69. Oando Plc Key Highlights on Q4 15 and Q1 16
70. OANDO Concludes Recapitalization Partial Divestment of
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72. OANDO Releases Q4 15 and Q1 16 Results Declares N4.10bn
PAT in Q1 SP N6.50k
73. Oando Plc Secures 5 Year N94.6 Billion Medium Term Facility
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74. Oando explains what Deregulation of Petrol Price means for
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75. Why Oando Plc's 2015 Audited Statements will
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76. OANDO to acquire OER Minority Shares for a Consideration
of US 1.20 per share in Cash
77. The Corporate
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on SEC Laws and Corporate Governance
79. The-Market-Memorandum---Fundamental-Considerations-for-Capital-Market-Reforms-in-Nigeria/2910
80.Corporate Governance and Directors' Remuneration
81. SEC Proposes New Rules & Amendments to Rules on Book
Building, Corporate Governance
82. Good Corporate Governance is Good Business
83. SEC, Udo Udoma And Corporate Governance: The Fact Files
84. Enabling Law - Investment and Securities Act (ISA) 2007
85. SEC Nigeria's Executed Rules and Regulations as
at June 2017
86.
SEC
Nigeria's Consolidated Rules and Regulations as at 2013
87. Code
of Corporate Governance for Public Companies 4 April 2011
Related News
on Oando from Other Sources
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N236bn Liability: Oando Shareholders Protest in Ibadan - Independent
89.
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90.
Suspension
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91.
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92.
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94.
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