An internal audit conducted by Wilmar International, a global agribusiness conglomerate based in Singapore, uncovered a wide-scale fraud in the financial department at the company’s Ugandan palm oil subsidiary, Oil Palm Uganda Ltd (OPUL), according to a report in the Ugandan newspaper, the Observer.
The internal audit found evidence of improper transactions and activities amounting to Shs 5.3 billion ($1.4 million) in undocumented payments, improper bonuses, unapproved palm oil inventory adjustments, third-party kickbacks, and other fraudulent transactions, says the report.
The internal audit focuses on former OPUL financial controller, Janadhan Naidu. A January report by PML Daily, suggested that Naidu fled Uganda shortly after being named as a target in the fraud investigation, either to India or the United Kingdom. The fraud could also be much bigger, as OPUL suffered a loss of Shs 74 billion ($20 million) much of which is thought to be related to fraud and graft by Naidu and others.
Two months after the audit was initiated, Kodey Rao, the Managing Director BIDCO Uganda resigned his position. BIDCO was a joint owner of OPUL, along with Wilmar, and provided oversight of the operation.
The audit report, the Observer, also accuses Naidu of setting up fake companies and also of awarding contracts to a construction company he owned to build and renovate local schools as part of the company’s social responsibility program.
“The objective of the engagement was to better understand the impact of the losses incurred and to assess and improve on existing company processes and control,” the audit report states. 