Singapore's Olam Group disputes forex fraud claims by Nigerian media
The market reacted swiftly to these fraud allegations, with shares of Olam Group trading down...
The reports, published by The Daily Nigerian and Prime Business Africa on September 8 and September 9, 2023, alleged that Nigeria's secret police were conducting an investigation into Olam Group's Nigerian subsidiaries, Olam Nigeria, and Olam International, along with associated firms, for their alleged role in a foreign exchange fraud exceeding $50 billion.
In response to these allegations, Olam Group released an official statement categorically rejecting the claims made in the articles. The company emphasised its commitment to adhering to ethical and legal business practices and announced that it had instructed its audit committee to conduct a thorough review of the matter, Reuters reports.
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The market reacted swiftly to these allegations, with shares of Olam Group trading down 7.8% at S$1.180 as of 0627 GMT. Earlier in the trading session, the stock touched a record low of S$1.150.
Furthermore, the reports asserted that certain companies connected to Olam Group had "fictitious Nigerians as directors" and that authorities had "uncovered a chain of shell companies" linked to the conglomerate.
Olam Group clarified that its subsidiary, Olam Nigeria, has been actively cooperating with Nigerian authorities by providing requested information. The company expressed its continued commitment to maintaining transparency and cooperating fully with any investigations.
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