Energy firm Seplat says it has terminated a consultancy agreement with its co-founder, A.B.C Orjiako and his company Amaze Limited, after accusing him of conducting major business commitments in Seplat’s name without its knowledge.
Mr Orjiako retired from the board of Seplat last year but was retained on consultancy by the company helped found to provide assistance with “certain external stakeholder engagements.”
The agreement was earlier suspended on Feb. 13 for a review before its ultimate termination.
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Seplat accused Mr Orjiako of “breaches of material nature” such as “unilaterally making significant commitments on Seplat’s letterhead without prior Board authority or knowledge.”
“This course of action was necessary to protect the Company and its Shareholders, Directors, and Officers from potential and increasing liability arising from the conduct of the Consultants, Dr. Orjiako and Amaze Limited,” the company said in a note to the Nigeria Exchange Limited Thursday.
The company said it has commenced legal action against Mr Orjiako and Amaze Limited at the Federal High Court in Abuja.
“Seplat Energy reiterates its commitment to high standards of corporate governance across all areas of its business. The matter is now sub judice and awaiting resolution by the Court,” it said in a note signed by the company’s chairman, Basil Omiyi.
Mr Orjiako could not be immediately reached for comments.
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The energy firm has faced controversies in recent weeks, peaking with its current CEO Roger Brown being forced by a court to step down after he was accused of wrongdoing.
The Nigeria interior ministry revoked his residency and work permit.
Seplat reported a record revenue last year (N403 billion as against N293.6 billion the previous year; up 30%). But its profit fell 4.5% to N44 billion from N46 billion, dragging down its earnings per share from N97.63 to N45.
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