Lekoil Limited has said its board of directors has commenced steps to recover the $450,000 paid to Seawave Invest Ltd, which introduced it to those falsely purporting to represent the Qatar Investment Authority regarding a $184m loan agreement.
It said it would review its internal corporate governance guidelines following the results of the investigation into the origination and execution of the loan agreement purportedly with the QIA.
The indigenous oil firm said as announced on January 13, 2020, the board of directors discovered that the facility agreement had not been entered into with the QIA, but instead with certain individuals falsely purporting to represent the QIA.
Lekoil noted in a statement that an independent committee of the board was established to investigate the origination and execution of the loan agreement and steps that might reasonably be taken to retrieve monies paid in association with the transaction.
It said the committee was supported in its review by Kroll Associates UK Limited, acting as third-party forensic investigators, adding that 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.
The company said as a result of the Investigation, and following recommendations from the committee, the board had commenced steps “to recover the $450,000 paid to Seawave, including the issuance of pre-action letter of demand against Seawave and its principals, Mr Bismarck Abrafi and Mr Said Memene; and Mr Rilk Dacleu Idrac, the purported representative of the QIA.”
It said the board had commenced a review of the company’s corporate governance practices and procedures for the review and approval of major transactions, with the intent of implementing suggested changes as soon as practicable.
The company said the committee found that the loan agreement was part of a fraud perpetrated against the company.
The committee’s report said, “The facility agreement and the sums to be received by Lekoil pursuant to it are not legally binding. There is no evidence of any complicity of any Lekoil director or employee in the fraud.”
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