Nigeria’s Securities and Exchange Commission (SEC) is probing Oando, an oil company owned and run by Wale Tinubu, a cousin of former Governor Bola Tinubu of Lagos State.

Mr. Bola Tinubu, the national of the All Progressives Party (APC), is also in business partnership with Mr. Wale Tinubu. A petition by two of Oando’s shareholders triggered SEC’s investigation of the oil firm.

Nigeria’s Securities and Exchange Commission (SEC) is probing Oando, an oil company owned and run by Wale Tinubu, a cousin of former Governor Bola Tinubu of Lagos State. Mr. Bola Tinubu, the national of the All Progressives Party (APC), is also in business partnership with Mr. Wale Tinubu.

A petition by two of Oando’s shareholders triggered SEC’s investigation of the oil firm, it has been revealed. The two petitioners are Dahiru Mangal and Italian businessman, Gabriel Volpi.

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Both petitioners have filed at least four lawsuits against Oando following a wrecked business move in which the firm acquired oil infrastructure from CONOCO Phillips in Nigeria. The questionable deal cost Oando $1.5 billion. Mr. Volpi reportedly gave Oando’s Wale Tinubu the sum of $900 million to effect the deal. In addition, Mr. Mangal reportedly contributed $250 million while former Vice President Atiku Abubakar contributed $50 million to the purchase which proved a disastrous investment for Oando. The petitioners are alleging mismanagement and ownership fraud on the part of the company’s operators.

A source at SEC said the commission’s investigators had so far found evidence that Oando had “been cooking its books for the past six years, creating the impression that it was making a profit when in fact the company was swimming in debts and overburdened by mismanagement.”

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Mr. Wale Tinubu is believed to be neck deep in Oando’s financial and investment crisis. Our SEC source stated that Mr. Tinubu’s stake in the company fell to a minuscule one percent after he secured funds from Mr. Volpi, former VP Atiku, and Mr. Mangal. Our source added that former Governor Tinubu apparently counted on using his political influence with the Muhammadu Buhari administration to re-inject life into Oando, “but that hasn’t happened.”

President Buhari frequently used Mr. Wale Tinubu’s private jet during the 2015 electoral campaign. In addition, the businessman was reportedly liberal with cash donations to the campaign, according to a political source who spoke to our correspondent.

For more..
http://amore.ng/probe-oando-shareholders-declare-company-sham/

Interesting. This is the company yorubas say belong to them. Rubbish. Afonjas claiming public companies and mismanaging them.

If I remember correctly, the news at the time of the Conoco deal was that Oando used a consortium of local and international banks to finance a large portion of this deal. So the figures being thrown about are slightly confusing.

Yes but there was also equity funding. It wasn't all debt. I will look for the reports from back then but I am 99% sure there was equity funding.

RichieM:
If I remember correctly, the news at the time of the Conoco deal was that Oando used a consortium of local and international banks to finance a large portion of this deal. So the figures being thrown about are slightly confusing.

All companies operate with a vast debt portfolio and Oando is no different. "Financial and investment crisis"; a little melodramatic don't you think. Any such "crisis" is beyond farfetched especially with oil prices rebounding. This is clearly a disagreement being blown out of proportion.

SusanandCakes:
All companies operate with a vast debt portfolio and Oando is no different. "Financial and investment crisis"; a little melodramatic don't you think. Any such "crisis" is beyond farfetched especially with oil prices rebounding. This is clearly a disagreement being blown out of proportion.

Exactl. It does seem like a disagreement gone wrong, being sweetened with all sorts of claims. The fact that these same investors who chose to invest when the oil price was north of a hundred dollars are now filling claims against Oando makes me think this entire storyis a lie, or if not a lie, just over exaggerated. There is definitely something off and all these claims made against Oando all of a sudden don't seem very believable.