*Olam Group’s first-half profit has reportedly plummeted by about 90 percent due to lower crop yields from its almond orchards amid dropping share prices and a postponed Initial Public Offering of its Olam Agri Unit in Saudi Arabia, despite the company’s denial of over $50 billion Foreign Exchange fraud allegations in Nigeria

Isola Moses | 绿帽献妻

There are indications that 2023 has apparently been a tumultuous year for Olam Group, especially in regard to the wide-ranging effects of the alleged over $50 billion Foreign Exchange (Forex) fraud against the company in Nigeria.

绿帽献妻 learnt Olam though had denied the alleged multibillion Dollar Forex infractions in the West African country, the dust is yet to settle on the conglomerate’s fortunes in both Nigeria and the international world.

Singapore’s Olam Group Monday, September 11, 2023, denied earlier reports in the Nigerian media alleging that its units in the West African country were involved in a multi-billion Dollar Forex fraud.

Olam Group denies multi-billion Dollar Forex fraud allegations in Nigeria

The company in a statement rather categorically, denied the allegations in the (news) articles,” noting that it has directed the company’s audit committee to review the matter, assisted by external counsel and auditors.

It also stated that Olam Nigeria has responded to requests for information by regulatory authorities, and would continue to cooperate with them on the inquiry into the alleged聽 Forex infractions.

The statement said: “Olam Nigeria has responded to, and will continue to cooperate in relation to legitimate requests for information by the relevant Nigerian authorities.”

The company as well denied Forex fraud allegations against its subsidiaries, and refuted all 鈥渂aseless and inflammatory statements.鈥�

It further noted despite the recent reports, there are no 鈥渇ictitious Nigerian directors鈥� in Olam Nigeria, and subsidiaries of the unit are audited by Ernst & Young Global鈥檚 member firm in Nigeria.

It also clarified that Olam Group doesn鈥檛 have a 鈥渘etwork of shell companies鈥� as alleged.

Company’s half-year profit, share prices reportedly decline

The company鈥檚 first-half profit this year reportedly sank about 90 percent due to lower crop yields from its almond orchards, and a planned Initial Public Offering (IPO) of its Olam Agri unit in Saudi Arabia, which has been delayed till 2024.

The IPO was initially planned for the first half of 2023, report noted.

Similarly, shares of the commodities trader were down 7.8 percent at S$1.180, after hitting a record low of S$1.150 earlier in the session over a week ago, and S$1.09 as of Thursday, September 21, 2023, according to report.

Olam Group鈥檚 share prices also closed 8.6 percent lower in Singapore, the biggest daily decline since March 2020, said Bloomberg.

Over a decade back, short-seller Muddy Waters LLC was said to have questioned Olam Group鈥檚 business model, which eventually led to a takeover by Singapore鈥檚 Temasek Holdings Pte. The state-owned investment fund holds about 51 percent of the company, according to report.

It is recalled that Olam Group recently flagged the Nigeria allegations, and noted that its unit in Nigeria had posted a bond for Director Prakash Kanth to secure his cooperation with 鈥渁ny legitimate requests from relevant Nigerian authorities for information or assistance”, including the Department of State Services (DSS).

Sundry allegations against Olam Group’s operations in Nigeria

There are also reports purported that some of the companies in Olam Group had “fictitious Nigerians as Directors” and that authorities have “uncovered a chain of shell companies” linked to Olam, among others.

Subsequently, the DSS, Nigeria’s Secret Police in respect of reported allegations between September 8 and 9 this year, commenced an investigation into the company’s units Olam Nigeria and Olam International and their associate firms for a more than $50 billion Foreign Exchange fraud, report said.

Specifically, an exclusive report reportedly emerged recently, that the DSS was investigating a 鈥渕ega economic fraud involving Olam Nigeria Limited, Olam International, and their nine subsidiaries to the tune of over $50 billion.鈥�

The publication had alleged that Olam 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 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 as an infraction against the extant Forex regulation in Nigeria.

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, were also preferred against the company.

Besides, Olam Nigeria was named as part of a wider probe into the Forex fraud and Anchors Borrowers鈥� Programme (ABP) deals that purportedly occurred under Mr. Godwin Emefiele, suspended Governor of CBN.

There were also claims that Olam usually, directed the Forex buyers to lodge the Naira equivalent into the account of one or many of its Special Purpose Vehicles (SPVs) in the country during the period under review, among others.

Olam Group has been described as “a leading food and agri-business, supplying food ingredients, feed and fibre to 20,200 customers worldwide, ranging from multinational organisations with world famous brands to small family-run businesses.”

The company also says it helps customers to meet “increasing consumer demands for sustainable sourcing and healthy foods.”

Kindly Share This Story