Vee Networks Removes Otudeko as Chairman
Adewusi, Lagos Commissioner, to act
By Tayo Ajakaye
Nigeria's second largest mobile telecommunications firm, Vee Networks Limited, yesterday sack-ed its founding chairman, Mr. Oba Otudeko, while appointing Dr. Bayo Adewusi as the new chairman in an acting capacity. Adewusi is the Lagos State Commissioner for Finance.
The board also announced the appointment of Dunlop chairman, Mr. Gamaliel Onosode, as a director of the company.
Although no reason was given for Otudeko's removal, sources said last night that shareholders were of the opinion that there should be a new beginning in the company.
To ensure this new beginning, it was deemed necessary that Otudeko, whose tenure had brought Vee Networks into many controversies, particularly the one concerning the pull-out of Vodacom South Africa from a management agreement it signed with the company, should not be part of the process.
On the eve of Vodacom take-over of the management of Vee Networks in April this year, Otudeko had in a letter to the acting CEO, Boye Olusanya directed that brokerage fees be paid to three companies, Bromley Limited, EMPEE Ventures and Oceanic Assets & Securities limited for facilitating investment funds from Delta, Akwa Ibom and Lagos states respectively.
About six weeks after it took over the management of Vee Networks Vodacom discovered that contrary to an earlier agreement, the controversial brokerage fees had indeed been paid.
The South African company thereafter terminated the agreement citing breach of corporate governance and trust.
Yesterday's statement announcing Otudeko's removal as chairman of the company reads:
"The Board of Directors of Vee Networks Limited (trading as Vmobile) has announced the appointment of Dr. Ismaila Adebayo Adewusi as Acting Chairman. Dr. Adewusi succeeds Mr. Oba Otudeko, who has chaired the Board since its inception.
"Adewusi, who is the Lagos State Commissioner for Finance, emerged Chairman at a meeting of the company's Board in Lagos today (Tuesday, August 10, 2004).
"Also, the Board announced the appointment of Mr. Gama-liel Onosode as a Director of the company.
"The Board noted the sterling contributions of Mr. Otudeko to the successes recorded by the company in its three years of operation, adding that the company benefited immensely from his wise counsel and fatherly disposition at all times."
The statement also announced the holding of a successful 3rd Annual General meeting, where its audited financial statements for the six months to December 31, 2003 were approved by the shareholders. It did not disclose its figures.
Although he has was removed as the board chairman there is the likelihood that Otudeko would still remain on the board of the company.
At inception in 2001, Vee Networks which was operating as Econet Wireless Nigeria Limited with registration number RC: 398557 had Otudeko as chairman.
Major shareholders in Vee Networks include Broad Communications Limited, First City Asset Management Limited, Ocean and Oil Networks Limited, Bromley Limited, Leadway Assurance Plc. and the investment companies of Lagos , Delta and Akwa Ibom States.
A statement on the company's yet to be redesigned website described Otudeko as "one of Nigeria's foremost businessmen. He is Chairman of Honeywell Group with interests in oil & gas, financial services, real estate, flour mill, brewing and engineering."
The removal of Otudeko as chairman is expected to ease the in-fighting and instability which were part of problems that have hindered the growth of the company.
Other directors of the company are Mr. David Edevbie, Delta State Commissioner of Finance; Professor Akpan Ekpo, Chair-man, Akwa Ibom Investment Promotion Council; Mr. Oye Hassan-Odukale, Managing Director, Leadway Assurance Plc.; and Mr. Henry Imasekha, Managing Director, Bromley Limited.
Others are Dr. Jonathan Long, Managing Director, First City Monument Bank; Mr. Jacobs Ajekigbe, Managing Director, First Bank of Nigeria; Mr. Wale Tinubu, Managing Director, Oando Plc.; Mr. Paul Usoro, Managing Partner, Paul Usoro and Co.; and Alhaji Ado Wanka, Executive Director, First Bank of Nigeria.
Currently, Vmobile has a subscriber base of more than one million and has service in more than two-thirds of the 36 states in the country. When it announced its half-year results for the six months ended July 2003, it made a profit of N3.5 billion.
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