The sub-committee of the House of Representatives on Capital Market and Institutions has ordered the Securities and Exchange Commission (SEC) to takeover Capital Oil Plc for allegedly defrauding shareholders of more than N5 billion.
The committee, chaired by a lawmaker from Lagos State, Mr. Tony Nwulu, is investigating the level of compliance with operational and regulatory requirements by publicly-quoted companies in the country.
Hon. Nwulu noted that the panel had information detailing “shocking revelations” on how successive management teams of Capital Oil had allegedly mismanaged shareholders’ funds.
He said SEC must sanction the company and other firms involved in insider abuses to serve as a deterrent.
According to him, the committee is extending the warning to all the publicly-quoted 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.”
Speaking further on the situation in Capital Oil, the chairman noted that the committee will invite the management of SEC and previous management of Capital Oil. Besides the abuse of shareholders’ funds, the committee also found out that the company was in tax deficit of over N70 million.
“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.”
Nwulu assured that the House would follow the matter to a logical conclusion by ensuring that those who committed the abuses get punished.
Capital Oil Plc is a petroleum marketing company. The company focuses on downstream sector of the oil and gas industry in Nigeria.