07/09/2023
Okavango Delta, Sept. 7 — Communities and advocacy groups in Namibia have levelled serious allegations against Canadian oil driller ReconAfrica. Their complaint contends that the company has deceived both regulators and investors regarding its activities in the region. The accusations involve misrepresentation of interactions with local communities, non-compliance with laws, and the environmental threat posed by drilling activities in the Okavango Delta, a designated World Heritage Site.
The formal complaint implores regulatory bodies to launch an investigation into ReconAfrica’s alleged misrepresentation of its on-the-ground activities to investors, potentially leading to investment decisions made under false pretences. In the United States, making false statements to investors to induce stock purchases is unlawful, and the complaint underscores that significant investments were made in the company based on these purported misrepresentations.
ReconAfrica had assured investors of a ‘world-class’ environmental and social program, but farmers in the region claim that their lands were taken without consent, and the company allegedly disposed of drilling waste in unlined pits. An independent Parliamentary inquiry has also raised concerns about potential corruption related to ReconAfrica’s operations. Nevertheless, the company has consistently maintained to investors and regulators that it has adhered to all applicable laws. These alleged misrepresentations are believed to have contributed to the company’s remarkable valuation of nearly one billion dollars, all while failing to extract a single drop of oil.
The 27-page complaint goes further by calling for a suspension of trading in ReconAfrica’s stock while a comprehensive criminal investigation into the actions of the company’s leadership is conducted. The groups involved, who have successfully challenged ReconAfrica’s assertions in the past, assert that the claims made by the company to investors are untrue and do not align with the realities on the ground. Local leaders have purportedly faced detainment, surveillance, and harassment for their opposition to the project.
The submission, dated August 29, 2023, is meticulously documented and supported by an extensive array of facts. It has been submitted to various investigative bodies, including the United States Securities and Exchange Commission, the Department of Justice, the FBI’s Criminal Fraud Division, Germany’s financial fraud division known as BAFIN, and Namibian regulatory authorities.
Key Quotes from the Complaint’s Executive Summary:
“These assembled facts reveal that the company has bullied local and international critics, possibly paid off Namibian politicians, potentially polluted local fields and waterways, lied about having the necessary drilling permits to investors, illegally drilled inside wildlife reserves, illegally cleared roads within community-owned land, lied about drilling into the shallow watershed of two World Heritage properties, and was illegally in possession of the electronic communications of local leaders publicly opposed to their project.”
NDN Staffer Okavango Delta, Sept. 7 -- Communities and advocacy groups in Namibia have levelled
