Oil firm, Oando is experiencing heavy loss over links to former governor jailed for corruption abroad, Mr James Ibori.
is a report of the consequence of allegation by british
prosecutor,Sasha Wass that Ibori claimed to own 30% of Oando and the
company paid over $4.2m into companies owned by the in jail former
'Shares in Nigerian oil company Oando fell by
almost the 10 percent limit allowed on the Nigerian Stock Exchange (NSE)
for a second day following allegations by a British prosecutor about
links to jailed former Governor of Delta State, James Ibori.
The energy company’s shares were down 9.37 percent at 9.14 naira ($0.06) by 1017
GMT, Reuters data showed, after briefly falling 9.95 percent.
prosecutor Sasha Wass told a London court on Tuesday that Ibori had
revealed to a Swiss private bank in 2004 that he owned 30 percent of
Oando, which paid $1.2 million into his account that year.
was elaborating on allegations about links between Oando and Ibori made
at the start of a three-week confiscation hearing at London’s Southwark
Crown Court on Monday.
'Oando has admitted paying more than twice that sum into Ibori-owned companies, but denied it knew they were his.
It also denied he had a significant shareholding in Oando.
allegations and negative share price reaction could prove a headache
not just for Oando but for U.S. oil giant ConocoPhillips, which is
selling its Nigerian assets to Oando’s Toronto-listed subsidiary Oando
Energy Resources Inc. for $1.79 billion.
Ever since that deal was
disclosed in December last year, industry experts have doubted whether
Oando would be able to raise enough cash to complete the sale – despite
numerous bank loans and rights issues.
'Oando has said it already has the funding secured.
of Ibori’s assets and how he used shell companies, foreign bank
accounts and other investments to hide them are being disclosed as part
of the court hearing in London.
'It is one of the biggest
embezzlement cases seen in Britain and a rare example of corruption in
Africa’s second biggest economy being punished.
One equity dealer
said people were dumping Oando’s stock as a result of panic because of
the negative news, but that the company’s fundamentals were still
“The price earnings ratio is one of the best in the sector,” he said.