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Oando In Trouble: London Tribunal asks Tinubu, Boyo to pay Volpi N208 billion

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Amid accusations by aggrieved shareholders of attempts to suppress the report of the ongoing forensic audit of its operation, Oando PLC Chief Executive, Wale Tinubu, and his deputy, Mofe Boyo, have been asked to pay Ansbury Investments Inc. about $680 million (about N207.9 billion @ N305.8/dollar).

Ansbury was incorporated in Panama as part of a family trust by an Italian-Nigerian businessman, Gabriele Volpi.

The three-member London Court of International Arbitration (LCIA) presided by David Midon on July 6 gave the partial award against the two embattled top officials of Nigeria’s indigenous oil company.

In the ruling, affirmed by two other co-arbitrators, Marco Frigessi di Rattalma and Harry Matovu, the tribunal upheld Mr Volpi’s application that Ocean and Oil Development Partners (OODP) was indebted to Ansbury by about $600 million (about N183.5 billion).

OODP Limited, incorporated in the British Virgin Islands, controls 55.96 per cent equity in Oando PLC through a holding company, Ocean and Oil Development Partners (OODP) Nigeria Ltd.

The company was established at a time Oando PLC was preparing to acquire ConocoPhillips’ upstream oil and gas assets in Nigeria.

According to a copy of the tribunal ruling sent to PREMIUM TIMES on Sunday by counsel to Ansbury Investment, Andrea Moja, the court also held that Whitmore Asset Management Limited was liable for another debt of $80 million (N24.5 billion).

Whitmore, incorporated in the British Virgin Islands as a single purpose investment vehicle, belongs to Messrs Tinubu and Boyo.

Court documents seen by PREMIUM TIMES showed initial agreement signed on June 17, 2013 gave 60 per cent equity in the venture to Ansbury and 40 per cent to Whitmore.

However, the source of dispute was whether there was a legally binding agreement for Ansbury to transfer 20 per cent share of its equity in the venture to Whitmore, such that OODP BVI equity would change to 60 per cent for Whitmore and 40 per cent for Ansbury.

Besides, the court was confronted with the decision whether the parties made a legally binding agreement to convert an outstanding loan of $150 million (plus interest) into shares in Oando E&P Holdings Limited.

In its ruling, the court said the draft amended loan agreement as well as the draft “Put and Call Option Agreements” never became effective.

“Whitmore is in breach of the repayment obligation in the First Loan Agreement,” the tribunal ruled. “The alleged oral agreement to switch the parties’ respective shareholdings in OODP BVI is not binding on the parties. The alleged oral agreement to extend the term of the loans to 1 January 2020 is not binding on the parties.”

Mr Moja said the final award was expected to follow in the next few days whereby the tribunal would make definite pronouncements on accrued interests on the debts owed and legal expenses.

He said the tribunal’s ruling is in respect of a debt Mr Tinubu is owing, and does not affect Mr Volpi’s status in Oando as its majority shareholder.

He said in line with the tribunal processes, details of the award have since been communicated to all the parties concerned since July 9. The ruling is, however, subject to appeal.

How Crisis Started

In 2012, Ansbury said it invested about $700 million in OODP BVI, by acquiring a 61.9 per cent stake in the firm, with Withmore Limited holding 38.10 per cent.

According to Mr. Volpi, Mr Tinubu approached him to invest in the company at a time Oando PLC was mobilising $1.5 billion to acquire assets in ConocoPhillips’ upstream oil and gas in Nigeria.

Similarly, OODP BVI, which controls 99.99 per cent equity in OODP Nigeria, holds 55.96 per cent of the stakes in Oando.

When the dispute broke out in 2017, Ansbury said it equally petitioned the Nigerian capital market regulatory authorities, the Securities and Exchange Commission (SEC) in May accusing the management of Oando PLC of mismanagement, “insider dealings, manipulation of the company’s shareholding structure and huge indebtedness”.

The petition culminated in the forensic audit of Oando PLC operations ordered by SEC in October 18, 2017.

But, the exercise did not take off several months after following the suspension from the office of the former Director General of SEC, Mounir Gwarzo.

MUNIR-GWARZO
Although Abdul Zubair was appointed acting DG to succeed Mr Gwarzo, he was redeployed on April 13 and replaced by Mary Uduk, whom critics say was brought by the minister to do her bidding.

Months after the audit by KPMG commenced, aggrieved shareholders under the platform of Proactive Shareholders Association of Nigeria (PROSAN) accused the management of the company, a fortnight ago, of working with the Minister of Finance, Kemi Adeosun and Mrs Uduk, to frustrate the release of the audit report.

The shareholders blamed the long delay in releasing the audit report on Mrs Adeosun and Ms Uduk’s alleged clandestine activities “to shield Oando management from criminal prosecution”.

“We are calling on the Acting Director-General of SEC to immediately release the report of the forensic audit conducted on the company since last year although we believe the result will be compromised since they have failed to suspend the management of the company while the so-called forensic audit lasted,” National Coordinator of PROSAN, Taiwo Oderinde, said on Sunday in a statement sent to PREMIUM TIMES.

Oando Speaks

When contacted, the spokesperson of Oando, Alero Balogun, said on Monday that she does not have the authority to react to the debt issue.

She, however, Oando or Mr Tinubu’s lawyers would do so at the appropriate time.

Ms Balogun denied the allegation by Oando shareholders that the management was sitting on the forensic audit report.

“We (Oando PLC) are not sitting on any audit report. We went to court to challenge the audit, because we said SEC would not be fair. We lost. Now the the audit has begun and they are saying it is taking too long. We are also waiting for the report of the audit like every other person,” she said.

When PREMIUM TIMES contacted the minister for her response to the allegation she was frustrating the audit, her spokesperson, Oluyinka Akintunde, said his boss had no comment on the allegation.

Mr Akintunde directed this reporter to SEC, which he explained was the agency that ordered the forensic audit.

When this reporter contacted the acting director general of SEC for her response, the acting spokesperson of the commission, Efe Ebelo, assured that Ms Uduk would respond to PREMIUM TIMES’ enquiry.

About a day later, no response has been received from the regulator.

The firm conducting the audit, KPMG, also declined comment on the status.

A representative of the firm, who answered the telephone when the company’s official telephone was called, said KPMG is not obliged to speak to the media on any of its clients’ briefs.

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IBEDC records 1,459 energy theft cases in January, February

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The Ibadan Electricity Distribution Company said it has recorded 1,459 cases of energy theft by its subscribers between January and February 2024.

This was disclosed in a press statement signed by the firm’s Chief Key Accounts Officer, Mr. Johnson Tinuoye, on Tuesday.

IBEDC added that it is actively pursuing investigations and legal actions against individuals and businesses involved in the theft in collaboration with the Federal Government Special Investigation and Prosecution Task Force on Electricity Offences.

Identifying the cases, IBEDC said they included various offences such as meter bypass and illegal meter tampering, which resulted in significant financial losses amounting to hundreds of millions of naira for the company.

The statement read, “We want to send a clear message to our customers that energy theft will not be tolerated. Our collaboration with the Federal Government Special Investigation and Prosecution Task Force on Electricity Offences underscores our commitment to ensuring a fair and just electricity distribution system.

“Energy theft not only undermines the integrity of our operations but also deprives IBEDC of the revenue necessary to provide quality services to our customers.”

Tinuoye emphasised that under the Electricity Act, energy theft is now recognised as a criminal offense, carrying severe penalties including imprisonment stressing, “In the Osun region, two individuals were apprehended for stealing energy through meter bypass and illegal connections. Their cases have been formally charged in court for prosecution.”

IBEDC further urged customers to refrain from engaging in any form of energy theft, emphasising that the consequences can be severe, as there is no room for negotiation with the SIPTEO Task Force team, which is actively patrolling and investigating instances of energy theft for prosecution.

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Copyright Breach: NCC Drags MTN, Others To Court Over Musician’s Works

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The Nigerian Copyright Commission (NCC) has filed criminal charges against MTN Nigeria Communications Ltd. and four others over alleged copyright infringement.

The charge with number FHC/ABJ/CR/111/2024 filed in the Abuja Division of the Federal High Court was obtained by journalists on Monday.

News Agency of Nigeria (NAN) reported that the four other defendants in the case include the chief executive officer of MTN Nigeria, Karl Toriola; Nkeakam Abhulimen, Fun Mobile Ltd.; and Yahaya Maibe.

In the three-count charge, NCC alleged that the defendants, between 2010 and 2017, “offered for sale, sold and traded for business’’, infringed the musical works of an artiste, Maleke Idowu Moye, without his consent and authorisation.

The commission alleged that the defendants used musical works and sound recordings of Mr Maleke with subsisting copyright as caller ringback tunes without the authorisation of the artiste.

The musician’s musical works and sound recordings allegedly infringed upon included 911, Minimini-wanawana, Stop Racism, Ewole, 911 instrumental, Radio, Low Waist, and No Bother.

The defendants were also alleged to have distributed the musical works to their subscribers without authorisation, thereby infringing on the rights of the artiste.

In the third count, the defendants were alleged to have in their possession, other than for their private or domestic use, the artiste’s musical works and sound recordings.

According to NCC, the alleged offences are contrary to and punishable under section 20 (2) (a) (b) and (c) of the Copyright Act, Cap. C28, Laws of the Federation of Nigeria, 2004.

The case has yet to be assigned to any judge, and no date has been fixed for the mention.

Meanwhile, no official statement has been released by any of the defendants as at the time of filing this report, while all efforts to get reactions from MTN by New Telegraph proved abortive.

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LASG, LCC ANNOUNCE REOPENING OF LEKKI CONSERVATION CENTRE AFTER REPAIRS

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Following the completion of extensive routine maintenance works on the Lekki Conservation Centre (LCC), the Lagos State Government and the Management of the Centre have announced that the Walkway will be reopened for public use with effect from Friday, 29th March 2024.

The Special Adviser to the Governor on Tourism, Arts and Culture, Mr. Idris Aregbe confirmed this on Friday during a visit to the Centre in Lekki alongside some officials of the Ministry.

Aregbe said that he was happy to see that all repairs and renovations on the facility, including the Walkway, have been completed and would be accessible for tourism during the Easter celebration.

The Special Adviser appreciated Lagosians and tourists across the world for their patience during the thorough maintenance works carried out at the Centre in Lekki.

The Director-General of the Centre, Prof Mathew Onoja also appreciated the State Government for its intervention following the viral video, which first circulated in December as well as the swift response and efforts towards making the repairs and renovations seamless.

He noted that the Centre being a major tourism asset in Lagos State has played host to tourists from all over the world as it offers a serene environment for nature tourism and also boasts of the longest canopy walkway in Africa.

Recall that the facility has been undergoing routine maintenance since January following apprehensions arising from the damaged section of the Canopy Walkway, which had been repaired before the viral video was posted on social media platforms.

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