OLAM Group, a prominent Singaporean commodities trader, has categorically refuted allegations made by Nigerian media last week, accusing its African subsidiaries of involvement in a multi-billion dollar foreign exchange fraud. The reports, published by The Daily Nigerian and Prime Business Africa, claimed that Nigeria’s secret police were investigating Olam’s units, Olam Nigeria and Olam International, along with their affiliated companies, for a foreign exchange scam amounting to over $50bn.
In response to the allegations, Olam Group issued a statement asserting its innocence and commitment to addressing the issue. The company stated, ‘The company categorically denies the allegations in the Articles,’ and has initiated an internal review through its audit committee.
The impact of these allegations was immediately reflected in Olam Group’s share prices, which saw a sharp decline of 7.8 percent to S$1.180 during trading hours on Monday. Earlier in the session, the share prices hit a record low of S$1.150, underscoring the seriousness of the accusations.
Furthermore, the reports alleged that some of Olam Group’s affiliated companies had ‘fictitious Nigerians as directors’ and that a network of ‘shell companies’ linked to Olam had been uncovered by authorities.
The reports were initially published on September 8 and September 9, intensifying concerns about the company’s operations in Nigeria and the potential legal ramifications it may face.
Olam Group emphasised that its subsidiary, Olam Nigeria, has been cooperating with requests for information from Nigerian authorities and will continue to do so. As the investigation unfolds, the Singaporean company remains under scrutiny, with investors and stakeholders closely monitoring developments in this ongoing case.