Dangote Denies Any Wrongdoing, Gives Details of Forex Transactions
- Dangote Industries Limited has spoken on the claims that it is indulged in illegal foreign exchange deal
- The group said that its business is funded through the Interbank FX Market which is in line with CBN directives
- It stated that funds invested in its expansion projects in various African countries were legitimate capital investment.
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market
Dangote Industries Limited has issued a warning to those linking the firm to economic sabotage.
This follows earlier claims that the company is under investigation for illegal foreign exchange deals and money laundering.
The Dangote Group stressed that the construction of its various plants has always been funded through the Interbank FX Market.
It added that this is in line with the CBN directives and periodic progress reports, which were submitted to banks for onward submission to the CBN.
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This comes amid reports that the CBN has begun paying a significant percentage of the outstanding matured FX forwards in banks.
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No payment made through Dubai company
In a report by The Nation, the company stated that the terms and conditions for payments on the transactions were clearly spelled out in the Letters of Credit instruments.
According to the company, this is in line with the International Chamber of Commerce's Universal Customs and Practices for Documentation Credit (UCP 600).
“It is also crucial to note that the Letters of Credit in favour of Sinoma International Engineering Co. Ltd. (a Chinese government-owned company), being the major contractor who accounted for over 75 percent of these expenditures, were paid against the presentation of all relevant shipping documents. There was no single payment that was made through any Dubai company owned by us.
the statement noted.
All projects commissioned
The company noted that all FX purchases in respect of its African project expansion were fully utilized. According to the group, there are records to show that the projects were commissioned by top officials of the government, banks, and other respectable bodies.
In addition, the company said funds invested in its expansion projects in different African countries are legitimate capital investments. It added that the sum of $576 million for FX repatriation helped boost exchange earnings in Nigeria and stabilise the FX market.
Most of the time, it noted that payments to certain local suppliers, contractors, and vendors are made locally for regulatory and tax reasons due to host country rules.
It added that the money is then moved to its project accounts in the host nations for pre-operational costs and other local building material purchases so that vendors can be paid according to local laws.
It said that all of these transactions were well documented and approved. Hence, it is able to repatriate FX into Nigeria. It added that all payments were properly audited and could be further verified.
However, it revealed that the CBN specifically gave the company "approval to purchase FX totaling $3.755 billion from the interbank market between 2010 and 2018”. It explained that this was to fund its various African projects.
The Group, however, said it has utilised only 47.70 percent of the approvals in the total sum of N1.791 billion.
The company said the allegation was a rehash of a similar report by a competitor under the guise of concerned citizens in 2016.
Why Dangote Refinery is Delaying Production as Five Modular Refineries Take-Off
The failure to supply crude oil to domestic refineries, including the Dangote Refinery, has delayed production, Legit.ng reported.
The development comes as the Dangote Refinery failed to meet its October production deadline.
This is the second time the refinery has missed its production date in 2023 since it was commissioned on May 22, 2023.
Source: Legit.ng
