Shareholders call for Wale Tinubu’s resignation from Oando

Oando Group Chief Executive Officer, Wale Tinubu

Shareholders of Oando Plc have asked the Group Managing Director, Wale Tinubu, to resign.

The President, Trusted Shareholders’ Association of Nigeria (TSAN), Muktar Muktar, made the call yesterday.

He said the shareholders’ demand on Tinubu and his team became necessary to save the company from collapse.

Mukhtar also condemned the Securities and Exchange Commission (SEC) for not responding appropriately to the shareholders’ request in respect of the alleged infractions in the company.

According to Mukhtar: “The regulators have not done enough to protect shareholders in the whole Oando saga.”

But, in a swift response to The Guardian on telephone, a spokesperson for Oando Plc, Alero Balogun, said the call for the resignation of the GMD was out of place.

This, she said, was based on the fact that the apex regulator had investigated the allegations and decided to carry out a forensic audit.

She said: “It is already old news that the shareholders have been protesting all this while. The SEC has investigated us and had decided to carry out a forensic audit.

“The commission should be allowed to do its work. Oando is making profit, so why are they calling for the GMD’s resignation?”

In a statement to The Guardian in Lagos yesterday, Mukhtar said: “Ernst & Young, the duly appointed independent auditors to Oando, having scrutinised the accounts of the company, came up with a damning report that stated in clear terms that the liabilities of the company had surpassed its assets by over N200billion.

“The auditors further declared that there were serious concerns on the continuity of the company. Based on this report, the management of Oando should have been sacked and prosecuted.”

Muktar said on the contrary, nothing has been done on it, adding that such act could not happen in countries like the U.S.A., U.K., Europe and even Asia.

He stressed that it was shameful that, while the company had been unable to pay dividends in the past four years, the company’s executives are travelling around in private jets and living large at the expense of the shareholders.

“Similarly, the management has continued to increase the remuneration of directors and board members, while the company is left to die. This is a clear case of robbing Peter to pay Paul,” he said.

Muktar further explained that in other countries, the regulator would have ordered the sack of the company’s management, if there were evidences or signs of infractions.

He said: “I don’t know why Oando’s management board is still in place. When some of these things happened in some banks when Sanusi Lamido Sanusi was the Central Bank of Nigeria (CBN) Governor, he sacked the management boards of the institutions that were culpable.

“Even recently, the CBN in the exercise of its regulatory powers, sacked the management and board of Skye Bank to save it from collapse. The SEC should have acted similarly in the Oando matter.”

He called for fresh hands and ideas to redirect the affairs of Oando and save it from hemorrhaging.

“It is worrisome that the management running the affairs of Oando has been there for 19 years. That on its own supposed not to be in a corporate organisation.



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