The federal government removed Abdul Zubair as acting director-general, Securities and Exchange Commission (SEC) for reportedly defying Kemi Adeosun, minister of Finance minister’s orders to lift the suspension on Oando’s stock last week.
SEC has lost two chiefs in less than five months in the wake of an investigation into Oando Plc.
Adeosun suspended Zubair as acting director-general and replaced him with Mary Uduk.
Zubair had taken the post in December from Mounir Gwarzo, who in October ordered the probe into Oando that resulted in its shares being halted.
Gwarzo had been suspended at the end of November to allow for an investigation into allegations of financial impropriety, which he has denied.
Zubair was removed after the SEC defied the minister’s orders by lifting the suspension on Oando’s stock last week, when she had asked the halt to remain in place pending a meeting of the ministry, the SEC and the Johannesburg bourse, according to the ministry.
Kemi Adeosun, minister of Finance minister
“The minister told them not to lift that suspension; they went ahead, and took the decision on their own,” Oluyinka Akintunde, minister’s spokesman said by phone to Bloomberg.
Zubair’s removal is “part of efforts to instill confidence,” which was eroded last week after some market operators complained about how the Oando issue is being handled, Akintunde said.
"It will affect investors’ confidence because you really do not want a lot of back and forth from the regulators, and that is what we have seen," said Olalekan Olabode, an analyst at Vetiva Capital Management based in Lagos.
The energy firm came under scrutiny after a review found alleged corporate governance failures and financial mismanagement, which Oando denied.
The company’s shareholders have “suffered” because the company has taken many steps over the past six months that would’ve shored up the share price, Oando spokeswoman Obehi Ojeaga said, declining to comment about the SEC appointments.
