Olam Denies $50bn Forex Fraud Allegations

Image

By Adedapo Adesanya

Olam Group has denied allegations of $50 billion fraud in Nigeria and ordered a review into the matter.

In a filing to the Singapore Stock Exchange on Monday, the company categorically denied the allegations about Olam Nigeria and its subsidiaries and refuted all “baseless and inflammatory statements.”

The company noted that despite recent reports, there are no “fictitious Nigerian directors” in Olam Nigeria, and subsidiaries of the unit are audited by Ernst & Young Global’s member firm in the country.

It also clarified that Olam Group doesn’t have a “network of shell companies” as alleged.

The company’s board has directed the audit committee to conduct a review assisted by 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 group’s shares closed 8.6 per cent lower in Singapore, the biggest daily decline since March 2020.

An exclusive report emerged last week that the Department of State Security (DSS) was investigating a “mega economic fraud involving Olam Nigeria Limited, Olam International, and their nine subsidiaries to the tune of over $50 billion.”

The report alleged that it was involved in a chain of round-tripping foreign exchange deals since 2015 through its Special Purpose Vehicles, SPVs, and had booked about $34 billion with the Central Bank of Nigeria (CBN) as capital importation at official rates.

Sources cited in the report seen by Business Post said the company round-tripped the forex and sold to businessmen, especially oil and gas marketers and industries such as Indorama and Fouani, at parallel market rates.

There were also allegations of fictitious Nigerians as directors, but said the accounts are solely managed by the Indian expatriates, some of whom are based in Europe and Asia.

It was said the company was named as part of a wider probe into the FX fraud and Anchors Borrowers’ Programme (ABP) deals that took place under the suspended governor of CBN, Mr Godwin Emefiele.

Also reported were claims that Olam usually directed the forex buyers to lodge the naira equivalent into the account of one or many of its SPVs during the period under review, among others.

Share
Related Stories
Image
29-September-2023

VFD Group Quits NASD OTC Securities Exchange After Delisting

By Adedapo Adesanya VFD Group Plc has been officially delisted from the NASD Over-the-Counter (OTC) Securities Exchange months after the proprietary investment company revealed its intention to list its stocks on the Nigerian Exchange (NGX) Limited. The bourse on Thursday confirmed the development in a notice seen by Business Post. “Pursuant to the company’s request to delist from the NASD OTC Exchange, we wish to inform you that VFD Group PLC shares will be delisted with effect from the close of business (COB) today, Thursday, September 28, 2023,” the notice read. Last Friday, after three years of trading on the

Image
29-September-2023

Nigerian Bourse Loses 0.31% as Investors Liquidate Shares

By Dipo Olowookere Profit-taking persisted at the Nigerian Exchange (NGX) Limited on Thursday, with Customs Street going down by 0.31 per cent on its return from a midweek break. The market closed its doors to traders on Wednesday due to the public holiday declared by the federal government to mark Eid-el Maulud, the birthday of Prophet Mohammed. Business Post reports that market participants did not take their minds off the pressing issues affecting the Nigerian economy, especially rising inflation, energy costs and the foreign exchange (FX) crisis. As a result, they liquidated their shares, leading to a negative market breadth

Image
30-September-2023

Brent, WTI Shrink on Macroeconomic Worries, Profit Taking

By Adedapo Adesanya The prices of Brent futures and the US West Texas Intermediate (WTI) futures went down by about 1 per cent on Friday, due to macroeconomic concerns and sustained profit-taking. Data showed that Brent fell by 7 cents to $95.31 per barrel and WTI depreciated by 92 cents to $90.97. Prices rose about 30 per cent in the third quarter of the year helped by the production cuts by the Organisation of the Petroleum Exporting Countries and allies (OPEC+). This action squeezed global crude supply. Brent was about 2.2 per cent in the week and 27 per cent

Image
28-September-2023

We Need Foreign Direct Investment Now Than Ever Before—Shettima

By Aduragbemi Omiyale The Vice President, Mr Kashim Shettima, has said Nigeria is in dire need of foreign direct investment (FDI) more than ever before, tasking domestic and foreign investors to make Nigeria their investment hub because efforts are being made to formulate business-friendly policies. Mr Shettima, while speaking when he hosted the management of First Surat Group, as well as top management of MTN Nigeria at the presidential villa in Abuja, charged MTN Nigeria to facilitate and spearhead digital mobile money and digital education. He assured that President Bola Tinubu was willing to partner with various stakeholders in the

More Stories
Image
20-December-2020

FRSC Promotes 2,880 Officers, Marshals

By Adedapo Adesanya The Federal Road Safety Corps (FRSC) has announced the promotion of 2,880 officers and marshals across the federation. The Corps Public Education Officer Assistant Corps Marshal, Mr Bisi Kazeem, made the announcement in a statement issued on Sunday in Abuja. He said that the FRSC approved the promotions following the consideration of a report by its establishment committee. Mr Kazeem said 435 officers were promoted to their next ranks, 769 Marshal Inspectors and 1,676 Road Marshal Assistants were equally elevated to the next ranks. According to him, out of the 435 officers, 33 of them were promoted

Image
10-February-2020

Fintech Now Attracting Young People to Capital Market—SEC

By Modupe Gbadeyanka Acting Director General of the Securities and Exchange Commission (SEC), Ms Mary Uduk, has commended the positive impact the financial technology (Fintech) has had in the Nigerian capital market, saying that space was beginning to make investment in the market very attractive to young people in the country. Ms Uduk gave this commendation when she hosted officials of the Department For International Development (DFID) and the Financial Conduct Authority (FCA) at her office in Abuja at the weekend. She informed her guests that in view of its contribution to investment in the nation’s capital market, the commission

Image
05-November-2020

Fire Guts Oando Tank Farm in Lagos [PHOTOS]

By Dipo Olowookere A fire incident has been reported at a petrol depot in the Ijora Badia area of Lagos State. The inferno occurred on Thursday at a tank farm belonging to Oando Plc, an energy company listed on the Nigerian Stock Exchange (NSE). According to the Lagos State Emergency Management Agency (LASEMA), the cause of the fire could not be immediately confirmed as at the time of the update this afternoon. However, the agency said it was still battling to put the situation under control as its officials have been deployed to the scene of the fire. LASEMA, in

Image
10-March-2023

Domestic Stock Market Gains 0.04% as Turnover Surges 104%

By Dipo Olowookere The growth reported on the floor of the Nigerian Exchange (NGX) Limited on Wednesday was sustained on Thursday as the domestic stock market appreciated by 0.04 per cent at the close of transactions. Persistent buying pressure in Dangote Cement and GTCO ensured the bulls remained at the market when trading activities ended yesterday. Business Post reports that the industrial goods sector appreciated by 0.53 per cent, and the consumer goods space went up by 0.04 per cent. The duo offset the 2.01 per cent loss posted by the energy counter, the 0.49 per cent decline reported by

Image
14-August-2018

Nigerian Stock Market Remains in Danger Zone as YtD Stays at -7.73%

By Dipo Olowookere The Nigerian Stock Exchange (NSE) ended Tuesday’s trading in the red territory again for the seventh consecutive session, losing 0.31 percent. News of the shareholder agreement signed by Seplat yesterday was not enough to provide the needed bullish trigger today as selling pressure persist. Business Post reports that the banking sector was the most hit at the stock market today, losing 1.06 percent at the close of market. At the close of transactions on Tuesday, August 14, 2018, the Nigerian stock market, which gained over 42 percent last year, has lost 7.73 percent this year. Today, the

Image
21-June-2018

TMT Finance Lists Top Priorities for African Telecom Operators

By Dipo Olowookere Accelerating digital transformation strategies, investing in new wireless and fixed network infrastructure, and embracing emerging technologies such as AI and IoT are among the top priorities for African telecom operators for the year ahead, according to global telecom, media and technology news and events company, TMT Finance. “Like many telecom operators globally, the major African operators are having to juggle several pressing priorities. “It is well documented that traditional voice and messaging service revenues are decreasing, while pressure to plough big capex spend into new network infrastructure is weighing on balance sheets,” said Ben Nice, Managing Editor

Image
18-April-2023

Strong US Dollar, More Rate Hikes Weaken Oil Prices

By Adedapo Adesanya Oil prices turned lower on Monday as the US Dollar strengthened and as investors mulled over a possible May interest rate hike by the US Federal Reserve. Brent crude futures fell by $1.55 or 1.8 per cent to settle at $84.76 a barrel, while the US West Texas Intermediate (WTI) crude dropped $1.69 or 2.1 per cent to trade at $80.83 a barrel. The US Dollar has been strengthening alongside interest rate hikes, making Dollar-denominated oil more expensive for holders of other currencies. The US Dollar index gained around 0.6 per cent on Monday. Traders are betting

Image
18-January-2017

NAHCO Appoints Bello as New Chairman

By Modupe Gbadeyanka Mr Usman Bello has been appointed as the new Chairman of the Nigerian Aviation Handling Company Plc (NAHCO Aviance). A statement signed by management of the firm disclosed that Mr Bello effectively takes over from the Vice Chairman, Mr Dennis Hasdenteufel, who had been acting in that position since October last year. According to the statement, Mr Bello emerged Chairman of the foremost aviation handling firm after a meeting of the board held on January 12, 2016. The statement pointed out that the Nigerian Stock Exchange (NSE) had been duly notified of the appointment as required by

Ad
Ad
Recent Stories
Image
30-September-2023

Mediacraft Associates Employees Get 25% Pay Rise

By Modupe Gbadeyanka The salaries of employees of Mediacraft Associates Limited, a leading Nigerian full-service Public Relations and Integrated Brand Communications Consultancy firm, have been increased by 15 and 25 per cent. This was confirmed by a statement from the organisation as it celebrates its 20th anniversary this year. It was disclosed that the gesture was to reward the efforts of the workers toward the growth of the company and to cushion the current hardships in the country due to the removal of petroleum subsidy. According to the chief executive of Mediacraft Associates, Mr John Ehiguese, the salary increase had

Image
30-September-2023

Are Audio Streaming Platforms in Your Marketing Mix? They Should be

By Mark Redguard Walk down the streets of any major city around the world and take a look at all the people you pass along the way. Chances are you’ll see more people wearing earphones and headphones, in all of their shapes and sizes, than not. Most of those people, whether they’re consuming music or podcasts, will be listening through an audio streaming platform. In fact, Spotify’s 500 million-plus users spent more than 132 billion hours streaming audio on the platform in 2022.  And that’s just Spotify. Factor in other platforms, including the likes of Mdundo and Audiomack, and the

Image
30-September-2023

Unlisted Stock Investors Grow Market to N1.105trn

By Adedapo Adesanya The NASD Over-the-Counter (OTC) Securities Exchange rose by 0.38 per cent on Friday, September 30, with N4.16 billion added to the value of the bourse, closing at N1.105 trillion compared with Thursday’s value of N1.101 trillion. The market witnessed the improvement a day after the shares of VFD Group were yanked off the trading platform, with the NASD Unlisted Securities Index (NSI) closing higher by 3.06 points to settle at 815.65 basis points versus the previous day’s 812.59 basis points. There were three gainers led by FrieslandCampina Wamco Nigeria Plc, which improved by N1.31 to close at

Image
30-September-2023

Naira Appreciates on Dollar Across FX Market Segments

By Adedapo Adesanya The Naira appreciated against the US Dollar in the Investors and Exporters (I&E), the Peer-to-Peer (P2P), and the black market arms of the foreign exchange (forex) market on Friday, September 29, as a turbulent third quarter ended. In the official segment, the local currency improved its value against the greenback by 2.6 per cent or N20.04 to close at N755.27/$1, in contrast to the preceding day’s N775.31/$1 amid a drop in the supply of FX into the system by 11.6 per cent or $16.73 million to $127.82 million from the $144.55 million published on Thursday. In the

Image
30-September-2023

Brent, WTI Shrink on Macroeconomic Worries, Profit Taking

By Adedapo Adesanya The prices of Brent futures and the US West Texas Intermediate (WTI) futures went down by about 1 per cent on Friday, due to macroeconomic concerns and sustained profit-taking. Data showed that Brent fell by 7 cents to $95.31 per barrel and WTI depreciated by 92 cents to $90.97. Prices rose about 30 per cent in the third quarter of the year helped by the production cuts by the Organisation of the Petroleum Exporting Countries and allies (OPEC+). This action squeezed global crude supply. Brent was about 2.2 per cent in the week and 27 per cent

Image
30-September-2023

NGX Sheds N37bn as Investors Sell Stocks in Panic to Buy FX

By Dipo Olowookere Profit-taking persisted on the floor of the Nigerian Exchange (NGX) Limited, as investors refused to tone down their profit-taking activities. It was observed that the market is gradually entering panic mode due to macroeconomic instability in the country, especially with the exchange rate of the Naira to the Dollar going above N1,000 in the parallel market. A stockbroker with one of the leading brokerage firms in the country, who asked not to be named, said the local bourse was witnessing panic selling due to investors liquidating their shares for Dollars. “This trend will continue for a while

Image
29-September-2023

FG, States, Local Councils Get N1.1tn As September Allocation

By Adedapo Adesanya The Federation Account Allocation Committee (FAAC) has shared a total of N1.1 trillion from the revenue generated by the nation in August 2023 for September to enable the three tiers of government; the federal government, states, and local government councils, to have funds to pay salaries and others. The allocation of the funds was confirmed by the Office of the Accountant General of the Federation on Friday following FAAC’s September 2023 meeting. According to a statement by the OAGF’s Director of Press and Public Relations, Mr Bawa Mokwa, there was “N1100.101 billion (N1.1 trillion) total distributable revenue.”

Image
29-September-2023

Erisco Product Reviewer Fights Back, Threatens 500m Suit

By Bliss Okperan A lady who reviewed a product of Erisco Foods Limited, Nagiko Tomato Mix, Mrs Chioma Egodi, has threatened to demand the sum of N500 million from the chief executive of the company, Mr Eric Umeofia, for violating her fundamental human rights. Mrs Egodi said she purchased the product at the market with the intention of using it to cook stew for her family. However, when she tasted it, according to her, it tasted too much sugar, prompting her to post about it on Facebook. It was reported that Erisco was not happy with the negative review. She

Image
29-September-2023

Scoring Success: How Data Analytics Revolutionizes Football Predictions Strategies

Data analytics is transforming football predictions as tools and techniques are consistently being designed to enhance accuracy and precision in football betting. In this article, we uncover the huge impact of data analytics in football betting. The Power of Data in Football Predictions In football betting, data analytics is used to collect, analyse, and interpret data to make informed predictions. This includes several metrics, such as player stats, team performance, head-to-head results, and external factors like injuries, fatigue, and weather conditions. Data analytics in football predictions is useful in the following ways:  Transforming Raw Data to Useful Piece of Information

Image
29-September-2023

Alleged Assault: Manchester United Recall Anthony to Squad

By Dipo Olowookere Brazilian winger, Anthony, is now eligible to make the Manchester United squad again, a statement from the football club has disclosed. A few weeks ago, the footballer was suspended by the English sports outfit over allegations of assault in his home country. His former girlfriend, Rosilene Silva, accused the footballer of assaulting her, prompting the police in Brazil to launch an investigation into the claims. The police in the United Kingdom also took an interest in the matter, forcing the Old Trafford team to ask Anthony to stay away from the team. In an update on Friday,