Oando stock down 20% since Ibori ownership fiasco began

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Oando stock has fallen the maximum 10% for a second straight day after a British prosecutor alleged that convicted and imprisoned former Delta State governor James Ibori was a share holder in the energy company.

British 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.

Wass 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.

Details 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 strong.

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