The latest installment in the ongoing saga between the Securities and Exchange Commission (SEC) and Oando Plc is the resignation of two key members of its management team. The company has announced the resignation of two non-executive directors – Chief Sena Anthony and Mr. Oghogho Akpata from the Board of Directors of the company with immediate effect; starting June 3, 2019.
Just as these news has trickled in a couple of days after the effective date, you would be right to imagine that Oando’s managerial crisis didn’t just explode all of a sudden.
It’s been bubbling since two years ago
This managerial crisis appears to be a sequel to the initial episode two years ago when two of its directors – Gabriel Volpi and Alhaji Dahiru Mangal) accused the company’s management of financial recklessness and denying them adequate representation on the board.
Following the accusations, SEC’s investigations revealed that the company was defaulting on a number of grounds ranging from false disclosures, market abuses, manipulation of financial statements, internal control failures, etc.
Then on Monday, June 3, 2019
Following a SEC directive, members of the Nigerian Police Force locked down Oando’s headquarter office at Ozumba Mbadiwe in Victoria Island, Lagos. It was followed by another directive that all the company’s top executives resigned, including the Group CEO, Wale Tinubu, over managerial misconduct and corruption claim.
SEC setup an interim management team to takeover, but Oando denied any interim management was coming in.
Shareholders and investors are already watching the stocks crash
In situations like this, the stocks usually take the first hit and those with vested interest feel the impact as well. The news of the takeover sent the stocks on a 5-month low of N4.20, and it’s expected to keep crashing while the tussle persists.