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Seplat Energy terminates consultancy contract with founder

Seplat Energy Plc, yesterday terminated a consultancy agreement involving its wholly-owned subsidiary and its co-founder Dr. A.B.C. Orjiako.

The decision throws up a fresh crisis with the current board of the company, chaired by Basil Omiyi.

Recall that earlier in the month, a Lagos Federal High Court forbade its Seplat Energy’s CEO, Roger Brown, from participating in the management and running of the company after allegations of favouritism, racism, discrimination and flouting of corporate governance principles.

In a statement to the Nigerian Exchange (NGX) in Lagos, accused Orjiako, the immediate past Board chairman of several infractions.

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 statement to the Exchange, dated March 23, reads in part: “Seplat Energy Plc announces the termination with immediate effect of the Consultancy Agreement between the Company’s wholly-owned subsidiary and its co-founder, Dr. A.B.C Orjiako, acting through Amaze Limited.

“Under the Consultancy Agreement, Dr. Orjiako was obliged to provide defined assistance with certain external stakeholder engagements following his retirement from the Board after the 2022 Annual General Meeting in May 2022.

“The termination follows the suspension of the Consultancy Agreement on 13 February 2023, as unanimously approved by the Board of Directors, following repeated warnings about breaches of a 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 has commenced legal action against Dr Orjiako and Amaze Limited at the Federal High Court in Abuja to seek appropriate legal remedies.

“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.”

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