According to reports from Reuters, Singapore-based Olam Group (OLAG.SI) has refuted recent allegations made by Nigerian media, which claimed that its subsidiaries in the African nation were implicated in a multi-billion-dollar foreign exchange fraud.
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In a statement, Olam unequivocally denied the allegations made in the articles and announced that it had instructed its audit committee to investigate the matter thoroughly.
The Daily Nigerian and Prime Business Africa initially reported the forex fraud accusations against Olam
The forex fraud accusations against Olam were initially reported by The Daily Nigerian and Prime Business Africa, which suggested that the State Security Service (SSS) was conducting an inquiry into Olam Nigeria, Olam International, and their affiliated companies, focusing on a foreign exchange fraud exceeding $50 billion.
The reports alleged that since 2015, the company had been involved in a series of foreign exchange transactions characterized by round-tripping.
Through its Special Purpose Vehicles (SPVs), Olam purportedly recorded approximately $34 billion as capital importation with the Central Bank of Nigeria (CBN) at official exchange rates. However, instead of channeling these funds into the Nigerian economy, the reports indicated that the company engaged in forex round-tripping, selling the currency to various business entities, notably oil and gas marketers, as well as industries like Indorama and Fouani, at parallel market rates.
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Olam Group stated that its subsidiary, Olam Nigeria, has been responsive to requests for information from Nigerian authorities and will continue to cooperate fully.
The Daily Nigerian also highlighted Olam Group’s prior FX-related violations, which extend beyond Nigeria. The report noted that the company had previously faced fines imposed by the United States Commodity Futures Trading Commission (CFTC) as far back as 2015.
Furthermore, in 2021, Ivory Coast issued a directive requiring Olam International to remit 142 billion CFA francs (equivalent to $262.7 million) to repatriate foreign currency.
These developments come from President Bola Tinubu’s administration’s commitment to undertake significant monetary policy and foreign exchange reforms. It is worth noting that the former Central Bank of Nigeria (CBN) Governor is currently under arrest and facing trial on approximately 20 corruption-related charges.
