Olam Group Denies News Reports Alleging Nigerian Units’ Involvement in Fraud

By P.R. Venkat

Olam Group denied two news reports that alleged that the commodity trader’s Nigerian units and subsidiaries were involved in a multi-billion dollar fraud.
In a filing to the Singapore exchange on Monday, the company refuted the allegations, calling them “baseless and inflammatory statements”.

Two recent articles from the Daily Nigerian newspaper and Prime Business Africa, citing unnamed sources, reported that Nigeria’s State Security Service is investigating economic fraud to the tune of over $50 billion involving Olam Nigeria, Olam International, and their nine subsidiaries.
Olam said that based on the group’s audited financial statements, which are publicly available, the Olam Group’s cumulative turnover in Nigeria, including all export, import, and domestic sales, for fiscal years 2015 to 2022 totalled $14 billion, and for the same eight-year period, the value of capital importations, via Certificates of Capital Importations, for the entire Olam Group in Nigeria was $2.4 billion.
“The references in the news articles to “$50 billion” and the sum of $34 billion “funneled… under… capital importation” by Olam are thus manifestly inaccurate and designed to be misleading,” Olam said.
The company also said there were no “fictitious Nigerian directors” in Olam Nigeria, nor does the Olam Group have a “network of shell companies.”
“All Olam Nigeria subsidiaries are formed for a proper corporate purpose and are audited by Ernst & Young Global’s member firm in Nigeria,” it said.
Olam said that notwithstanding its position on the news articles, the board has directed the audit committee to conduct a review of the matter, which will be assisted by external counsel and external auditors.
Trade in the shares of Olam halted on the Singapore Exchange earlier Monday and will resume at 2 p.m. Singapore time.
Write to P.R. Venkat at [email protected]