Afren notifies UK's SFO over expense payment concerns

Embattled Africa-focused oil company Afren on Monday released a statement of its notification to the UK’s Serious Fraud Office over concerns about expense payments expressed by the company’s legal advisers.

Afren said that its lawyers, Wilkie, Farr & Gallagher (WFG) have identified preliminary concerns after it engaged with them over the review of the company’s compliance. It noted that WFG have been reviewing “the hire of an individual within its operations in 2012 and the payment of certain travel and accommodation expenses connected to Afren's activities.”

Afren said that the law firm's report was now "almost complete". It added that after reviewing the preliminary findings by WFG, “the company has notified the proposed providers of the Interim Funding of such concerns (as required under the terms of such Interim Funding). In addition to this disclosure, the company has notified the Serious Fraud Office of such matters.”

As a result, Afren said that it has taken steps to halt its previous practices in relation to such expenses payments. “The company takes its compliance with all laws extremely seriously and we are committed to ensuring that our business is not undermined by breaches of our internal policies or applicable legislation,” said executive chairman Egbert Imomoh.

The statement follows the company’s plan to restructure its business after saying earlier this month that its shareholders’ stake in the business would probably be reduced to 11% as it looks to tie up a debt-for-equity swap with its bondholders to provide urgent funding.