Afren Release Results of independent review into disclosure around previous transactions and unauthorised payments

Afren Release Results of independent review into disclosure around previous transactions and unauthorised payments

Afren plc (“Afren” or the “Company”) announced that Willkie Farr & Gallagher (UK) LLP (“WFG”) has completed its independent review into certain transactions undertaken by the Company and whether such transactions should have been announced at the time they were entered into in accordance with the requirements of the Listing Rules.
The key findings were:
 There were two instances of the Company failing to comply with its reporting obligations under the Listing Rules
 A further transaction entered into that was subject to the investigation was not required to be disclosed
 There has been no material loss to the Company as a result of these transactions
 These three transactions were connected to the issues raised in the unauthorised payments review
 As previously announced, unauthorised payments were received by the CEO Osman Shahenshah and COO Shahid Ullah and two Associate Directors, Iain Wright and Galib Virani
 A further seven current and former employees also received payments
The Board believes that neither of the Partners involved in these transactions were aware of any wrong-doing.
In response to these findings the Company has:
 Notified the FCA of these breaches of its Listing Rule obligations and will make the full report available to the FCA
 Decided to terminate the employment and directorships of the CEO and COO for gross misconduct
 Decided to terminate the employment of the Company’s two Associate Directors with immediate effect
 Commenced disciplinary actions against the additional employees involved in the receipt of unauthorised payments
 Instructed counsel to commence legal proceedings to recover sums in respect of unauthorised payments
 Resolved to take actions to enhance the effectiveness of the Group’s internal reporting and controls
 Reaffirmed its commitment to maintaining the highest standards of corporate governance and will look to strengthen the Board
Commenting, Egbert Imomoh, Executive Chairman of Afren plc, said:
“The decisive and comprehensive actions we have set out today should leave no-one in any doubt about how seriously Afren takes the issues uncovered in July and our commitment to rebuild the confidence of shareholders, partners, staff and our other stakeholders. Our focus is now on delivering the significant opportunities we have before us with an open and transparent approach to our business based upon mutual respect, the highest standards of ethics, governance and business conduct.”
Source:
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Oil and Gas Press

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