Seplat Energy has terminated a consultancy agreement involving the company’s wholly owned subsidiary and its co-founder and immediate past chairman, A.B.C. Orjiako.
Mr Orjiako, acting through Amaze Limited, was required to offer specified support with some external stakeholder engagements after exiting the board last year according to details of the pact, Seplat said in a statement on Thursday.
Members of the board of directors of Nigeria’s biggest oil & gas company by market value unanimously terminated the consultancy agreement on 13 February after several warnings of infractions including “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 document said.
Seplat Energy, listed on stock exchanges in London and Lagos, has commenced a legal action against Mr Orjiako and Amaze Limited at the Federal High Court in Abuja in a bid to seek legal redress.
Seplat Energy spent over $450 million on goods and services supplied by 18 firms connected to Mr Orjiako and Austin Avuru, its former CEO over 12 years, the bulk of the payments coming after the company went public, according to its annual reports.
This month, a Lagos Federal High Court forbade its 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.
Shares in Seplat Energy had fallen by 0.5 per cent in London at 10:39 WAT, following the announcement, trading at £0.29 per unit.