Olam Group Shares Surged 9% afer Saying Audit Committee Has Found No Evidence of Fraud

Dow Jones02-19

Olam Group said an audit and risk committee has found no evidence to establish the allegations of a multi-billion dollar fraud by its Nigerian units.

Olam Group shares surged 9% on the news.

The review by the committee was conducted with the assistance of external counsels and independent external accountants, Olam said Monday.

In September, the Daily Nigerian newspaper and Prime Business Africa, citing unnamed sources, reported that Nigeria's State Security Service was investigating an economic fraud to the tune of over US$50 billion involving Olam Nigeria, Olam International, and their nine subsidiaries.

Olam had denied those allegations, and its board had directed the audit committee to review the matter.

"Olam Nigeria has cooperated fully with the Nigerian authorities and assisted in their enquiry. No charges have been brought against Olam Nigeria or any of its officers by the Nigerian authorities," the Singapore-listed company said, adding that all its businesses in Nigeria continue to operate normally.

The company said that Nigeria was an important part of its future strategic plan and it would continue to seek opportunities to grow its business there.

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Comments

  • Deshost
    02-19
    Deshost
    If all hold truth perhaps the 2 rumour mongers should be held responsible for the loss and anxiety to Olam's stakeholders so that they and any other publications think twice before spreading untruth or malicious lies for their own gains.  Shorting a stock for anticipated drop in current price is different from manipulative frauds through shareholders emotional response Your view in this matter?
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