Stakeholders in the nation’s capital market have condemned the move by the Securities and Exchange Commission, SEC, against Oando Plc.
The commission last week indicted Group Chief Executive Officer of Onado, Wale Tinubu, and his deputy, Mofe Boyo, over misconduct in managing the company and directed them as well as other directors affected to resign.
The commission has also announced an interim management to organise an Extra-ordinary General Meeting, EGM, to appoint a new board that would eventually appoint a new management team into place.
But speaking to Vanguard, yesterday, shareholders as well as other stakeholders expressed displeasure with the action, saying SEC had gone beyond its power.
Speaking on behalf of the Sokoto shareholders, Alhaji Kabiru Tambari, said: “We are not happy at all with what has happened. Wale Tinubu and his management team have suffered, they have put their resources, energy and time to keep this company moving forward and now the SEC wants to take it away from, not just them, but us the shareholders as well.
“When the company was making losses, the SEC didn’t bring up all these infractions and sanctions, but now the company is doing well, and has returned to profit, they’ve come with such drastic actions. This will foil the company’s attempt to pay us dividend at the end of the year.
“It is clear that the SEC wants to kill the company. How else do you explain an action such as this that defies logic? We, the shareholders, who the SEC are meant to be protecting, are not satisfied with the way this has been handled. They should think of the effect their actions will have on the market, if this continues, the company will not be able to pay salaries, the shares will be devalued badly leaving us in a precarious position.”
Mr. Patrick Ajudua, National Chairman, New Dimension Shareholders Association, said in his reaction: “The SEC’s findings on Oando speak volumes. As shareholders of the company, we are more interested in the protection of minority shareholders, the development and protection of the capital market.
“The consequences of these far-reaching directives from the regulator will have an adverse effect on the share price of the company, market integrity, rule of law and expected returns on investment.
“I believe that SEC, as presently constituted, has no power to issue such far-reaching directives without the consent of a board.
“The regulator has been operating without a board for more than four years and as such is like a car without a pilot, a human being with a body but no head. Even the USA SEC has not operated without a board since 1939.”