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Tag: Oando

  • Oando denies owning refinery in Malta

    Oando denies owning refinery in Malta

    Oando Plc has denied allegations linking the company and its executives to Raz Hansir Oil Terminal Ltd., a Maltese company purportedly involved in importing adulterated petroleum products into Nigeria.

    Oando Plc was alleged to operate an oil storage and blending facility, and purportedly responsible for importing adulterated petroleum products into Nigeria.

    Ms Ayotola Jagun, Company Secretary, Oando Plc, said this in a statement to the floor of Nigerian Exchange Ltd.(NGX) in Lagos.

    Jagun asserted that neither Oando nor its executives had ever held shares, investments or interests in the fictitious Maltese company.

    She said: “As part of a comprehensive investigation into the basis of the false claims, we conducted a search of the Malta Business Registry, the official repository for all registered entities, past and current, within the country.

    “Our search yielded no results for a company bearing that name. Subsequent due diligence efforts similarly failed to uncover any record of the company’s existence.

    “We, therefore, believe that the false claims are of malicious intent, aimed at misleading the public and our stakeholders.”

    The company secretary reiterated that as a publicly listed company, any corporate actions, such as acquisitions, were declared publicly in accordance with applicable corporate governance laws and rules.

    Jagun noted that information released about a publicly quoted company such as Oando was thoroughly researched and deemed accurate before been published in the public domain.

    She added that the company’s securities were traded daily across two exchanges: the NGX and the Johannesburg Stock Exchange (JSE).

    “To prevent misinformation and confusion among investors, as well as our other stakeholders, we implore all members of the press to take adequate steps to ensure the veracity of reports by fielding all enquiries with Oando Plc’s Corporate Communications department,” Jagun said.

  • Fuel subsidy: Oando, AA Rano, Sahara Energy, others deny receiving payments

    Fuel subsidy: Oando, AA Rano, Sahara Energy, others deny receiving payments

    Oando Plc, AA Rano, Sahara Energy Resources, Hyde have all denied involvement in fuel subsidy payments before the House of Representatives ad hoc committee investigating subsidy regime.

    The oil companies said they only lifted crude oil and we’re not part of subsidy payment by the Nigerian National Petroleum Company (NNPC) Ltd.

    The representatives of the companies took turns to explain contract deals with the  NNPC Ltd.  in Abuja after being quizzed by the lawmakers.

    Rep. Mustapha Aliyu, the Chairman of the Committee, said some oil companies were in attendance to explain their role in the deal with the Nigerian NNPC Ltd.

    Aliyu who read a list containing the name of the individual companies explained that a communication from the Corporate Affairs Commission (CAC), on the request of the committee came back without any information on the affected companies.

    He said that committee would write to the embassies of the companies which he said were mostly expatriates to provide the details of the profiles.

    Aliyu said there would be questions to answer, adding that the Committee wrote to CAC, requesting the commission to avail it with information on the following companies, about 57 companies.

    He said that the committee would also write to their commercial desks of their various embassies if they were expatriates so that they could have their full data.

    In the bid to ascertain the veracity of the over N6 trillion allegedly spent on fuel subsidy as of the Second Quarter of this year, the committee unveiled plans to extend the ongoing investigation into the fuel subsidy from 2017 to 2022.

    The committee investigating the subsidy payment between 2017 and 2021 chaired Aliyu had during the ongoing investigative hearing made public the lists of 23 unregistered oil companies that participated in the fuel subsidy regime between 2017 and 2021.

    The details of the affected companies were contained in a memo sent by Corporate Affairs Commission (CAC) with Reference No: RGO/SU/VOL.5/2022/0248 dated Wednesday, July 13, 2022, to the Chairman, Special Ad-hoc Committee on petroleum products subsidy regime.

  • Adulterated fuel: Our imported product meet specifications- Duke Oil, Oando Plc

    Adulterated fuel: Our imported product meet specifications- Duke Oil, Oando Plc

    Two oil companies, Duke Oil and Oando Plc have stated that their imported fuel met Nigerian specifications, repudiating responsibility in the importation of the adulterated fuel that hit the country.
    This was stated when the companies appeared before the House of Representatives Committee on Petroleum Resources (Downstream) investigating circumstances surrounding the importation of toxic fuel into the country on Wednesday.
    The Managing Director of Duke Oil, Mr Lawal Sade, stated that the product imported by his company was certified okay both at the Port of loading and the Port of discharge by relevant authorities.
    He, however, said they were notified by the Nigerian National Petroleum Corporation (NNPC), a few hours after the discharge that the product had some particles which made it discontinue the process.
    He noted that the product has since been quarantined.
    He said that there was a confirmation by the regulator which is the new Nigerian midstream, downstream authority to discharge that cargo within the stipulated date.
    ” The cargo discharged and the vessel sailed. It was just after 24 hours of operation then, Duke Oil was notified by the NNPC that there was a complaint from some of their customers that the cargo has some particles
    According to him, the cargo has been certified by the midstream and there is a joint inspection before the discharge and the specification provided in the contract with NNPC meet up the Nigerian specification.
    Earlier, the representative of Oando Plc, Afanga Afanga said that the firm’s product met the Nigerian specification.
    “In line with our Direct Sale Direct Purchase contract with NNPC, on the 16th of January 2022, we delivered 90MT worth of PMS onboard the Vessel MT Elka Apollon.
    “It is important to note that this PMS cargo that was supplied met and was in line with all the Nigerian contractual specifications.
    He said that it was confirmed by the mandatory tests that were conducted at the loading port in Europe and before discharge in Nigeria by independent NNPC quality inspectors.
    He added that the agents of the Nigerian Midstream and Downstream Regulatory Authority also confirmed it.
    He said that It was on this basis that the cargo was certified and accepted for discharge by NNPC.
    In his ruling, the Chairman of the committee, Rep. Abdullahi Gaya, asked the companies to submit all relevant documents regarding their presentation, saying they may be reinvited if necessary
  • We did not import adulterated PMS into Nigeria- Oando

    We did not import adulterated PMS into Nigeria- Oando

    Oando Plc has refuted a claim by the Nigerian National Petroleum Company (NNPC) Limited that the firm imported adulterated Premium Motor Spirit (PMS) into the country.

     

    The NNPC Group Managing Director, Mele Kyari, had on Wednesday said the national oil firm received on January 20, 2022, a report from its quality inspector on the presence of emulsion particles in PMS cargoes shipped to Nigeria from Antwerp-Belgium.

     

    Kyari explained that the NNPC investigation revealed the presence of methanol in four PMS cargoes imported by its Direct Sale Direct Purchase suppliers namely MRS, Emadeb/Hyde/AY Maikifi/Brittania-U Consortium, Oando, and Duke Oil.

     

    We want to assure the public that Oando as a responsible corporate citizen would not partake in the importation, distribution, or marketing of substandard petroleum products

     

    In a statement released to the Nigerian Exchange Limited on Thursday, Oando said, “Following media reports listing Oando as one of four importers that supplied methanol-blended Premium Motor Spirits into the country, we hereby state that Oando did not import and supply PMS that was adulterated or substandard.

     

    “The PMS supplied by Oando met Nigeria’s import specification. We are committed to working assiduously with the NNPC and industry to identify the root cause(s) of the subsequent contamination of the PMS supplied.

     

    We want to assure the public that Oando as a responsible corporate citizen would not partake in the importation, distribution, or marketing of substandard petroleum products.”

  • Importers of fake PMS won’t go unpunished- NNPC

    Importers of fake PMS won’t go unpunished- NNPC

    The Nigerian National Petroleum Company (NNPC) Limited has said firms that imported the recent adulterated Premium Motor Spirit (PMS), popularly called petrol, into the country would not go unpunished.

    In a statement signed by its Group General Manager- public affairs, Garba Deen Muhammad, pointed out that NNPC is working with the Nigerian Midstream and Downstream Regulatory Authority (NMDRA) to take necessary actions in line with subsisting regulations.

    Reassuring Nigerians of its capacity to restore sanity in the supply and distribution of quality PMS across the country within a short period, the Chief Executive Officer/ Group Managing Director of NNPC, Mallam Mele Kyari, pointed out that defaulting suppliers have been put on notice for remedial actions.

    The statement, in parts, read: “Providing a graphic chronicle of the unfortunate incident, the NNPC CEO said that on 20th January 2022, the company received a report from its quality inspector on the presence of emulsion particles in PMS cargoes shipped to Nigeria from Antwerp-Belgium.

    “He explained that NNPC investigation revealed the presence of Methanol in four PMS cargoes imported by the following Direct-Sale-Direct-Purchase (DSDP) suppliers as listed in the table below.

    Importer Vessel Name Load Port

    1 MRS — MT Bow Pioneer — LITASCO Terminal, Antwerp-Belgium

    2 Emadeb/Hyde/AY Maikifi/Brittania-U Consortium —- MT Tom Hilde —- LITASCO Terminal, Antwerp-Belgium

    3 Oando — MT Elka Apollon — LITASCO Terminal, Antwerp-Belgium

    4 Duke Oil —– MT Nord Gainer —-LITASCO Terminal, Antwerp-Belgium

    “He noted that cargoes quality certificates issued at loadport (Antwerp-Belgium) by AmSpec Belgium indicated that the gasoline complied with Nigerian Specification.

    It is important to note that the usual quality inspection protocol employed in both the load port in Belgium and our discharge ports in Nigeria do not include the test for Percent methanol content and therefore the additive was not detected by our quality inspectors

     

    “The NNPC quality inspectors including GMO, SGS, GeoChem, and G&G conducted tests before discharge also showed that the gasoline met Nigerian specification,” he said.

    According to the statement, Kyari noted that as a standard practice for all PMS imports to Nigeria, the said cargoes were equally certified by an inspection agent appointed by the NMDRA.

    “It is important to note that the usual quality inspection protocol employed in both the load port in Belgium and our discharge ports in Nigeria do not include the test for Percent methanol content and therefore the additive was not detected by our quality inspectors” Kyari stated.

    Adding: “However, in order to prevent the distribution of the petrol, the NNPC CEO said the company promptly ordered the quarantine of all un-evacuated volumes and the holding back of all the affected products in transit (both truck & marine).

  • House C’ttee summons NNPC, Oando, Agip others over alleged contract scam

    House C’ttee summons NNPC, Oando, Agip others over alleged contract scam

    The House of Representatives Committee on Petroleum Upstream on Wednesday summoned NNPC, Oando, Agip and other multinational companies over alleged irregularities in a contract awarded to a Nigerian company, Decoon Service limited.
    The House Committee in session issued the summon at an investigative hearing following the failure of the organisations to honour invitation earlier sent to them.
    In his submission, the Managing Director of Decoon Service limited, Mr Nelson Onubogu told the lawmakers that Agip is owing him sixteen million dollars for contracts executed.
    Onubogu said that he had been systematically suppressed iand threatened so that he does not get paid and enjoy other rights.
    The managing director alleged that generators supplied were being intentionally damaged as salt substances were seen in the engine oil after test.
    The Chairman of the committee, Rep. Musa Adar (APC-Lagos) said that the committee was out to unearth the truth and to ensure justice.
    “Now that those that you accused in your petition are not hear with us and those who are supposed to be independent assessors who are supposed to validate your claims the NNPC are not here, the committee is going to do what is right.
    “We will limit this hearing now and give another date that both both NNPC, Agip and Oando will appear with you here again.
    “When they come and make their presentations and then if there is anything you want to respond to in their presence, you will do so and let us see who will disagree.
    “We give two weeks for them to prepare and come, the secretariat should officially write them to appear on August 12.
    “Agip, NNPC, Ondo to appear before us on Wednesday August 12, by 10.a.m.,” he stated.

  • Court adjourns hearing in SEC, Oando case till July

    Justice Ayokunle Faji of the Federal High Court in Lagos on Monday adjourned until 22 July a case brought by Oando to halt management changes ordered by the Securities and Exchange Commission.

    The SEC’s action followed an investigation in which it allegedly found evidence of financial infractions by the company.

    Earlier this month, a court blocked the SEC from replacing Oando’s chief executive and taking other action against the oil firm, pending further hearings on the case.

    Legal fireworks and arguments were expected today between the sacked Oando directors, Jubril Adewale Tinubu and Omamofe Boyo and the Securities and Exchange Commission(SEC).

    Tinubu and Boyo are fighting to retain their control of the oil company after SEC appointed an interim management headed by Mutiu Sunmonu, a former head of Shell Nigeria.

    SEC has filed preliminary objection as well as counter-affidavit against the fundamental rights enforcement suit which Tinubu and Boyo, as applicants filed against it.

    In the preliminary objection, SEC urges the court to dismiss the suit on several grounds: lack of jurisdiction, non-compliance with condition precedent prescribed by the investment and Securities Act, no, 29, 2007 for instituting an action against the respondent and failure to exhaust administrative remedy available.

    SEC lawyers will argue that the suit by the sacked Oando directors is incompetent and an abuse of the process of the court.

    “The entire action is frivolous, vexations, malicious, tantamount to forum shopping, an abusive use of the processes of the court, with the aim of interfering with the SEC’s discharge of regulatory duties and responsibilities”, SEC said.

  • Review Oando’s sanction, CSO tells SEC

    Review Oando’s sanction, CSO tells SEC

    A Civil Society Organisation (CSO), Initiative for Leadership and Economic Watch in Nigeria (ILEWN), has urged the Securities and Exchange Commission (SEC) to review the sanction it placed on Oando Plc to give room for equity and justice.

    The group made the call in Abuja on Wednesday night by its Executive Director, Mr Splendour Agbonkpolor.

    Agbonkpolor regretted that SEC went ahead to stop Oando’s Annual General Meeting (AGM) even after a c0ourt had ordered that status quo be maintained.

    According to him, the disobedience to the order of court has questioned the integrity of SEC in the matter.

    Agbonkpolor therefore, criticised SEC over its decision to keep Oando Plc suspended in spite of its failure to make public its findings of the investigation it carried out two years ago.

    He argued that the failure of the Commission to make public its findings of the investigation before sanctioning the oil company created the impression that it was acting a script.

    He noted that the alleged infractions and penalties were unsubstantiated, ultra vires, invalid and calculated to prejudice the business of the company.

    “The SEC had recently directed Oando Plc to suspend its Annual General Meeting (AGM) and prior to the directive, it also ordered Oando’s Group Chief Executive Officer, Mr Wale Tinubu and other affected board members to resign.

    “The stakeholders’ of Oando Plc demanded for the content of the investigation report which took place two years to compile but the Commission refused to oblige them access to the investigation report.

    “This invariably implies that there are cookies in the investigation report thus it could be inferred that the Commission may be acting differently from the content of the report that supposedly indicted the chief executive and the second in command of the company.

    “The clarification needed by the public and Oando stakeholders’ has yet to be made available by SEC.

    “We also made effort as a Civil Society Organisation to get the report in line with Freedom of Information Act, but it was not made available and this brings skepticism to the entire processes and procedures that were followed during the course of investigation.

    “SEC is highly revered by all that knows the capacity that it carries and it must not be seen as being unprofessional in a manner that paints the Commission in a negative light,” he said in a statement.

  • Oando minority shareholders query SEC over suspension of AGM

    Minority Shareholders of Oando Plc on Wednesday decried the cancellation of the company’s 2018 Annual General Meeting (AGM) by the Securities and Exchange Commission (SEC) on the eve of the programme.

    Mr Hamza Ridhwa, who is also the Secretary-General, Association for Investors Liberation, spoke on behalf of the shareholders at a news conference in Lagos.

    The News Agency of Nigeria (NAN) recalls that the commission had on June 10 suspended till further notice, Oando’s AGM scheduled to hold on June 11.

    The suspension followed an order by a Federal High Court in Lagos due to an application made by the Group Chief Executive Officer of Oando Plc, Mr Adewale Tinubu and his deputy, who were suspended by SEC on May 31.

    Ridhwa said that the way and manner the meeting was cancelled was disappointing and disheartening.

    “We condemn in absolute terms the way and manner chosen by SEC in announcing the cancellation on the eve of the event, despite having ample time to do the same.

    “We have shareholders who have come in from all over the country; it is disappointing and disheartening to think that SEC did not think it worthy to consider us,” he said.

    Ridhwa said that SEC should explain to the shareholders, how the last minute suspension of the AGM was in their own interest.

    “SEC is a regulator that is here to protect the market, and in particular, we the minority shareholders.

    “They have a duty to care for us first. Their actions in the Oando case has neither protected us, nor shown a duty of care,” he said.

    Ridhwa said that shareholders were disappointed at SEC current management of the investigation into Oando Plc.

    “The actions, over the last two years and specifically the last 10 days, has shown that our voices as minority shareholders are not being listened to,” he said.

    Ridhwa said that the development had caused an erosion of value in the company’s shares since SEC’s May 31 Press statement from N4.20 on May 31 to N3.75 per share on June 11.

    He urged the Federal Government and the Presidency to intervene in the matter, noting that it was not acceptable for SEC to attempt to take down the company.

    According to him, the company adds so much value to the Nigerian economy, an employer of labour and also attracts significant Foreign Direct Investment into the country.

    The shareholder activist said that the commission should be called to order to act in a manner that was legal in the interests of the capital market and shareholders.

    In a statement in Lagos on June 10, SEC said that it directed the suspension to allow parties involved in the suit to maintain status quo.

    The commission said that it would update relevant stakeholders and the general public on the outcome of the litigation.

    SEC had on June 2, following the outcome of its forensic audit on Oando, constituted an interim management team to be headed by Muntiu Sunmonu for the oil company.

    It said that Sunmonu would oversee the affairs of the company and conduct an extra ordinary general meeting on or before July 1, to appoint a new board of directors. (NAN)
    JNC/CHOM

  • Oando Saga: SEC says action aimed at protecting investors

    The Securities and Exchange Commission (SEC) on Sunday said that Oando Plc was given sufficient opportunity of being heard before they were penalised.

    The commission said in Lagos that there were various opportunities by the company to defend themselves during the investigation by SEC and during the forensic audit.

    “The attention of SEC has been drawn to various reports questioning the regulatory authority of the SEC, and insinuating lack of due process in the investigations of Oando Plc.

    “To put the records straight, SEC hereby states that fair hearing is a paramount and fundamental principle which the Commission as a law abiding agency adheres to in all its investigative processes.

    “In the course of the investigations, communications e.g. letters and phone calls were exchanged and meetings held between the commission and Oando Plc, requesting for its comments and explanations on issues relating to the investigations.

    “The findings of the commission was communicated to the Group Chief Executive Officer (GCEO) of Oando Plc by a letter dated July 10, 2017,” SEC said in statement by Mrs Efe Ebelo, its Head, Corporate Communications and made available to the News Agency of Nigeria (NAN)

    The commission said it subsequently engaged Deloitte & Touche to conduct a Forensic Audit of the activities of Oando Plc.

    “In the course of conducting the forensic audit, Deloitte & Touche held regular sessions with members of the board and senior management of Oando Plc, and afforded them the opportunity to provide explanations on issues relating to the audit.

    “The commission confirms that Oando Plc was given sufficient opportunity of being heard and accorded several opportunities to rebut the issues revealed by the investigation.

    “The responses given by Oando Plc, were, however, considered unsatisfactory; prompting, the decision by the Commission to penalise the company and some of the individuals related to it for violations of securities laws.

    “The actions of the commission were properly effected pursuant to the provisions of the Investments & Securities Act (ISA) 2007 and the SEC Rules and Regulations made pursuant to the ISA 2007,” SEC said.

    It added that these facts had been properly articulated in the court process it filed at the Federal High Court in response to the suit instituted by the Group Chief Executive Officer and Deputy Group Chief Executive Officer of Oando Plc.

    “As the apex regulator of the Nigerian capital market, the commission has a mandate to protect investors,” it said.

    SEC noted that its recent action on Oando Plc aligned with the above cardinal mandate.

    It said that the directive for the removal of persons from the board of Oando Plc and the appointment of an interim management team to temporarily steer the affairs of the company was to protect investors and preserve stakeholder value.

    SEC said that failure or refusal of the commission to act in the face of the serious issues thrown up by the investigations or to reverse its directive would undermine the Federal Government’s agenda to build strong institutions.

    NAN reports that SEC on June 2, following the outcome of its forensic audit constituted an Interim Management team to be headed by Sunmonu for embattled Oando Plc.

    It noted that Sunmonu would oversee the affairs the company and conduct an Extra Ordinary General Meeting (EGM) on or before July 1, to appoint new board of directors.

    The regulatory body also said that appointed new board of directors at the meeting would subsequently select a management team for Oando Plc.

    The commission, however, reiterated its commitment to maintaining the integrity of the market.

    But the Federal High Court Lagos on June 3 granted an interim injunction to the embattled management of Oando restraining SEC from executing an interim management in the company.

    The interim injunction followed an application filed by Messrs Jubril Adewale Tinubu, embattled GCEO and Omamofe Boyo, for the enforcement of their fundamental human rights.

    It also restrained the commission from imposing a fine of N91.13 million on Tinubu and barring him and Boyo from being directors of public companies for five years.