Olam Group Audit Finds No Evidence of Fraud in Nigerian Units
Olam Group, the Singapore-listed agricultural commodities company, has announced that an audit and risk committee has concluded its investigation into allegations of a multi-billion dollar fraud by its Nigerian units and found no evidence to support the claims. The committee conducted the review with the assistance of external counsels and independent external accountants.
The allegations initially surfaced in September when the Daily Nigerian newspaper and Prime Business Africa reported that Nigeria’s State Security Service was investigating an economic fraud involving Olam Nigeria, Olam International, and their nine subsidiaries. The estimated value of the alleged fraud was over US$50 billion.
Olam Nigeria immediately denied the allegations and its board directed the audit committee to conduct a thorough review. In a statement, the company affirmed its full cooperation with the Nigerian authorities’ enquiry, emphasizing that no charges have been brought against Olam Nigeria or any of its officers.
The company highlighted its commitment to Nigeria as an integral part of its future strategic plan, stating that it will continue to seek opportunities for business growth in the country. Olam Nigeria’s operations are reported to be functioning normally despite the ongoing investigation.
The findings of the audit committee provide a sense of relief to Olam Group, as it tackles the damaging accusations. The company remains focused on its long-term goals and continues to explore avenues for expansion in Nigeria, a key market for its operations.
Olam Investigation: Audit Committee Finds No Evidence of Fraud in Nigerian Units.
Analyst comment
Positive news. The audit and risk committee found no evidence of fraud allegations against Olam Nigeria. The company has cooperated fully with authorities and its businesses in Nigeria continue to operate normally. Market will likely see increased confidence in Olam Group and its strategic plans for growth in Nigeria.
