House Of Reps Panel Mandates Takeover Of Capital Oil By SEC As Shareholders Kick

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House Of Reps Panel Mandates Takeover Of Capital Oil By SEC As Shareholders Kick

File photo: Capital Oil Plc

The Securities and Exchange Commission (SEC), have been mandated by a sub Committee on Capital Market and Institutions of the House of Representatives, to take over Capital Oil Plc, over alleged financial infraction amounting to over N2billion shareholders fund.

According to Vanguard, the mandate to takeover Capital Oil, was given by the Sub-Committee Chairman, Tony Nwulu, at the ongoing public hearing on the compliance of companies with operational and regulatory requirements at the National Assembly Abuja.

Nwulu said the lawmakers discovered that the management of Capital Oil had over the years, mismanaged shareholders’ funds to the tune of over N5bn.

The committee who raised the alarm that the company is owing over N70 million in taxes, also directed that all former Chief Executives of the company and management should be summoned to give account of how the company collapsed after collecting N2billion from the capital market.

Nwulu said: “It is disheartening that a public liability company established with shareholders funds would go down the drain the way the company is presently going.

“We are mandating SEC to take over the management of Capital Oil. We will invite SEC to come and tell us what they know about what has become of Capital Oil.

“We will be inviting all the past management of Capital Oil Plc to come and explain how come a company that Nigerians invested their hard-earned money in can just go this way without explanations.

“We are not going to back down, no matter how highly-placed they are. Anybody who played a part in this has explanation to make to Nigerians. It is pathetic to look at Nigerians in the face and tell them that their hard-earned money is gone.”

Nwulu said the committee is extending its searchlight to all the public companies in Nigeria.

“Wherever we see incompetence, we will expose them and ensure that SEC takes them over and where forensic audit needs to be done, we will make sure that it is carried out,” the lawmaker said.

Meanwhile, shareholders under the aegis of Progressive Shareholders Association of Nigeria, PSAN, has kicked against the move by the Legislature ordering SEC to take over the company, saying it is a misplacement of priority.

While speaking to a correspondent, the Chairman of PSAN, Boniface Okezie, said, “The order given to SEC to takeover Capital Oil by House of Representatives is a misplacement of directive as SEC cannot act as a liquidator.

“What they should have done is to direct SEC to appoint interim management or board that will be mandated to run the affairs of the company with a view to taking it out of the wood.

“In this way shareholders interest would be protected. We do not even want them to involve AMCON because they have failed in the responsibility. SEC cannot be able to operate the entity because it lacks the manpower.

“The interim management when appointed should be given a target and period within which to complete its task and handover to a well reconstituted board or management as the case may be. It is only in this way the shareholders fund could be recovered.”

 

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