The civic organisation, at a press conference addressed by its Executive Director, Lemmy Ughegbe, in Abuja on Thursday, said that the refusal of some members of the Board of Directors to retire from the company had also aggravated the crisis.
A civil society organisation, Make a Difference Initiative (MADI) has called for drastic reforms at the Seplat Energy PLC, noting that “mischief, deception, fragrant breach of corporate governance standards” are the root causes of the prevailing crisis rocking the company.
The civic organisation, at a press conference addressed by its Executive Director, Lemmy Ughegbe, in Abuja on Thursday, said that the refusal of some members of the Board of Directors to retire from the company had also aggravated the crisis.
It faulted the 12-month Board of Directors succession forward plan recently announced by Seplat, adding that the plan would see the Board Chairman, Basil Omiyi remain in office till May 2024.
The organisation equally criticised what it described a U-turn by another director, Prof. Fabian Ajogwu, who initially reportedly resigned but whom the board announced would now retire in October 2023.
“It is an unacceptable plot to perpetuate rather than cure the mischief, deception, fragrant breach of corporate governance standards, and sit-tight syndrome, which are the root causes of the prevailing crisis rocking Seplat Energy PLC.
“Whereas Section 12.10 of the NCCG unmistakably provides that “the tenure for Independent Non-Executive Directors should not exceed three terms of three years each”, Mr. Omiyi and Dr. Okeahalam refused to quit the Board despite spending over 10 years in clear breach of the Code.
“It is noteworthy that having done his maximum of nine year, Omiyi was only elected as an interim Chairman for one year in May 2022 to oversee the transition from the era of the co-founder and Pioneer Chairman Dr. ABC Orjiako and the search for Orjiako’s replacement. But he has refused to despite a 30th January 2023 letter by institutional shareholders of Seplat demanding them to retire, having overstayed their tenures by one year each.
“It beats all imaginations that the same Omiyi, who has now spent ten years on Seplat’s Board in clear violation of Section 12.10 of the NCCG has issued a statement to elongate his tenure to May 2024 and despite all the crisis and losses that his poor leadership and clear compromises of his status as an Independent Chairman have cost the company.
“This is unacceptable. Omiyi and Okeahalam must go so that Seplat, whose share price has plummeted, can begin to toe the path of recovery.”
MADI wondered why the Seplat Company had been silent on the issue of the company’s CEO, Mr. Roger Brown, which was equally at the centre of the crisis in the company.
“The Board remains scared to investigate the allegations against Roger Brown as the facts speak for itself. One wonders the 'remarkable' value he creates for the directors and not the company. What manner of man is Roger Brown? Would he sit tight if this was in his country, the UK?”