Olam denies $50 billion in alleged Forex fraud – Olam Group has denied allegations of a $50 billion Fraud in Nigeria and has commissioned an investigation into the matter.
Monday, in a filing with the Singapore Stock Exchange, the company categorically denied the allegations against Olam Nigeria and its subsidiaries and refuted all “baseless and inflammatory statements.”
Olam Nigeria has no “fictitious Nigerian directors” contrary to recent allegations, and subsidiaries of the unit are audited by Ernst & Young Global’s member firm in the country.
In addition, the statement clarified that Olam Group does not have a “network of shell companies” as had been alleged.
The board of directors has instructed the audit committee to conduct an investigation with the assistance of external counsel and auditors.
“Olam Nigeria has responded to and will continue to cooperate in relation to legitimate requests for information by the relevant Nigerian authorities,” the company said.
According to Bloomberg, the company’s shares ended the day in Singapore down 8.6%, the largest daily decline since March 2020.
The Department of State Security (DSS) is investigating a $50 billion economic fraud involving Olam Nigeria Limited, Olam International, and their nine subsidiaries, according to an exclusive report published last week.
Since 2015, it allegedly engaged in a series of round-tripping foreign exchange transactions through its Special Purpose Vehicles (SPVs) and recorded approximately $34 billion with the Central Bank of Nigeria (CBN) as capital importation at official rates, according to the report.
According to sources cited in a report seen by Financial Watch, the company sold foreign currency at parallel market rates to merchants, particularly oil and gas marketers and industries such as Indorama and Fouani.
There were also allegations of fictitious Nigerians serving as directors, but it was stated that the accounts are administered exclusively by Indian expatriates, some of whom reside in Europe and Asia.
It was reported that the company was named as part of a larger investigation into the FX fraud and Anchors Borrowers’ Programme (ABP) transactions that occurred under the CBN’s suspended governor, Mr. Godwin Emefiele.
During the period under review, Olam allegedly directed forex purchasers to deposit the naira equivalent into the account of one or more of its SPVs, among other allegations.
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