Oil and gas firm Afren will receive $20m (£13m) from its former chief executive and chief operating officer, who were fired in October for carrying on iniquitous financial dealings.
In a statement to the London Stock Exchange, the firm says:”Afren has entered in to settlement agreements with Mr Shahenshah and Mr Ullah which release them of claims relating to the unauthorised payments. As a result of such settlement, the company has agreed not to pursue legal proceedings against Mr Shahenshah and Mr Ullah in connection with the claims relating to the unauthorised payments.”
Former-CEO Osman Shahenshah and chief operating officer Shahid Ullah were dismissed for gross misconduct after a review by law firm Willkie, Farr and Gallagher which found the pair guilty of breaking various compliance protocols, such as receiving payments from a third party and squirreling away millions in a special purpose vehicle.
Shahenshah and Ullah reportedly received an illegitimate payment of $45m from one of the firm’s partner companies, and used the funds to pay themselves and their colleagues unauthorised bonuses.
The pair also sought personal benefits from the 2013 management buyout of another partner company, AMNI International Petroleum Development.