Validating a high-profile African company – uncovering high-risk potential

INDUSTRY: oil and gas

SERVICES: Nexus360 – Strategic Company Assessment.

Client need

The CEO of an oil and gas company was approached by the leader of a U.S.-validated African chamber of commerce to form a partnership with a high-profile African company.

This former state-owned enterprise offered several promising fields for prospection and exploration, backed by compelling technical data.

To ensure the credibility and viability of this significant business partnership, the CEO engaged Interdiligence to conduct a thorough investigation of the subject company.

One page solution:

Our innovative approach concludes complex reports and detailed analysis, into a concise one-page diagram that provides a full overview.

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The solution

APPROACH

Interdiligence assembled a multidisciplinary team to undertake a comprehensive research:

  • Open Source Intelligence (OSINT): Expert OSINT analysts with multilingual capabilities accessed commercial, financial, and legal data platforms hosted across multiple countries. They also scrutinized social media profiles and online activity associated with the subject company’s leadership to identify potential red flags.

  • Field Operations: Field agents were deployed in a neighboring country to the target, coordinating data collection in collaboration with trusted local contractors. This approach ensured a nuanced understanding of the on-ground realities.

  • Exhaustive Analysis: The investigation uncovered a complex web of corruption and conflicts of interest:
    • Leadership of the subject company was closely tied to local government officials who held stakes in the company.

    • Vendor companies contracted by the subject company were linked to military leaders suspected of serious crimes.

    • Extensive shareholding schemes involving relatives of political leaders pointed to a significant money laundering network permeating the local economy.

    • Connections with government leaders from a neighboring country further complicated the risk landscape.

Deliverables

Interdiligence provided the client with actionable intelligence through:

1. Comprehensive Intelligence Report: This detailed report outlined the findings, emphasizing the high-risk nature of the partnership opportunity. It demonstrated the pervasive corruption, conflicts of interest, and money laundering schemes associated with the subject company and its leadership.

2. Summary Deck: A concise deck presented key findings in clear bullet points, complemented by photos and diagrams, making it accessible and impactful for executive decision-making.

3. One-Page Solution: A color-coded social and business relational chart highlighted the critical elements of risk, offering a visually engaging summary that underpinned the “no-go” recommendation.

The Impact

Interdiligence’s investigation enabled the client to make a swift and informed decision to terminate the potential partnership. Key outcomes included:

1. Avoided Risk Exposure: The client avoided wasting time and financial resources navigating a complex and high-risk environment that initially appeared attractive.

2. Refined Strategic Relationships: Recognizing the risk associated with the chamber of commerce leaders who proposed the partnership, the client decided to cease further interactions with the individuals involved.

3. Enhanced Decision-Making Framework: The intelligence provided by Interdiligence reinforced the client’s due diligence processes, ensuring more robust risk management in future partnership considerations.