Adewale Sanyaolu
LEKOIL, the oil and gas exploration and production company with a focus on Nigeria and West Africa has admitted that due diligence undertaken by it, including third-party due diligence report, prior to the signing of the facility agreement in a failed loan deal proved to be inadequate. The company said it has legal claim to recover about $450,000 paid to secure a loan deal with the Qatar Investment Authority(‘’QIA’’) through Seawave Invest Ltd (“Seawave”) and its principals, in its capacity as introducer of those falsely purporting to represent the QIA.
According to Lekoil, the decision to recover the $450,000 is contained in the resolutions of an independent committee of the board established to investigate the origination and execution of the failed facility arrangement.
This was even as the company announced that it will review her internal corporate governance guidelines following the results of the investigation into the origination and execution of the loan agreement earlier announced by the Company on 2, January 2020 (the “Facility Agreement”), purportedly with the Qatar Investment Authority (“QIA”) (the “Transaction”).
‘‘As announced on 13, January 2020, following the discovery that the Facility Agreement had not been entered into with the QIA, but instead with certain individuals falsely purporting to represent the QIA, the Board established an independent committee of the Board (the “Committee”) to investigate the origination and execution of the Facility Agreement and steps which might reasonably be taken to retrieve monies paid in association with the Transaction (the “Investigation”).’’
Lekoil said the Committee was supported in its review by Kroll Associates UK Limited (“Kroll”) acting as third-party forensic investigators while advice was taken from Herbert Smith Freehills LLP, legal counsel engaged at the time of the Investigation, on discreet issues arising from Kroll’s work.
Other reports of the independent board committee investigation included the fact that; the facility agreement was a part of a fraud perpetrated against the Company, adding that the facility agreements, and the sums to be received by LEKOIL pursuant to it, are not legally binding.
The investigation stated further that there is no evidence of any complicity of any Lekoil Director or employee in the fraud.
‘‘The Chief Executive Officer (“CEO”) led the interaction and negotiations with the individuals falsely purporting to represent the QIA, on behalf of the Company, prior to ultimate approval being given by the Board to enter into the facility agreement.
The Board only approved the execution of the facility agreement after a third-party global risk consultant engaged to undertake the due diligence investigation on Seawave, provided a report, based on public record search, that did not identify any “red flags” on Seawave or its principals.’’