Olam Group Breaks Silence on Reports of Multi-Billion Dollar Forex Fraud, DSS Investigation

Olam Group Breaks Silence on Reports of Multi-Billion Dollar Forex Fraud, DSS Investigation

  • Olam has reacted to reports that the Department of State Services (DSS) has initiated an investigation into an alleged forex fraud in the company
  • The fraud was reported to involve Olam Nigeria Limited, Olam International, and their nine subsidiaries, with a sum exceeding $50 billion
  • Legit reached out to Olam Nigeria to get comments on the allegations, which have significantly affected the company's shares abroad

Singapore-based Olam Group, an agri-business company, has denied reports from some media organisations that its Nigerian unit is involved in forex exchange fraud.

The alleged fraud was put at $50 billion and reported to be ongoing since 2015 under the suspended Central Bank of Nigeria (CBN) governor, Godwin Emefiele.

Olam Nigeria business
Olam is one of Nigeria's biggest agricultural companies, employing thousands of Nigerians. Photo credit: Olam Nigeria

Emeifiele is currently under arrest and on trial for about 20 counts of charges relating to corruption.

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Details of allegations against Olam

The reports alleged that since 2015, the company gets dollars at official rates from the CBN and resells to companies at the parallel market rate for quick profits.

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The reports also alleged that some companies had "fictitious Nigerians as directors" and authorities have "uncovered a chain of shell companies" linked to Olam, among others.

Olam reacts to allegations

Bloomberg reports that the company was forced to react to the allegations after its shares tumbled to their lowest level on the Singapore stock exchange where it is listed.

The company's statement on the allegation reads:

"The company categorically denies the allegations in the Articles."

Olam Singapore, however, said it had directed its audit committee to review the matter.

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To get further insight and reactions to the allegations, Legit contacted Damilola Adeniyi, the Corporate Affairs Manager at Olam Nigeria. However, several calls have yet to be returned.

When the allegations of round-tripping mentioned in the reports were presented, she immediately blocked the Legit reporter from accessing her official line.

Olam tells Nigerians to be ready to pay more for Rice this December, give reasons

In another development, Olam Nigeria Limited warned Nigerians to prepare to pay more for rice.

Its warning is coming amid massive flooding from River Benue, which damaged the company’s crops and infrastructure in Rukubi Doma LGA of Nasarawa state.

Ade Adefeko, vice-president of Olam Nigeria Limited, speaking on a programme on Arise TV, said the incident affected the company’s $20 million investment and about 25% of Nigeria’s rice needs.

Source: Legit.ng

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