The RCMP have launched an investigation into a Canadian oil company that is drilling exploration wells near the ecologically sensitive Okavango River in southern Africa, The Globe and Mail has learned.
In response to questions from The Globe, the company said it was not aware of the investigation. The RCMP told The Globe they could neither confirm nor deny the existence of the investigation. The Globe reported last year that ReconAfrica’s stock price soared from about 50 cents to more than $12 on the TSX Venture Exchange in an 18-month period after an aggressive promotional campaign, including a series of speculative articles in online media, some of which were paid for by the company. The stock now trades at less than $5.
In another recent development, a Namibian parliamentary committee has reported that ReconAfrica failed to obtain necessary water and land use permits in the early phase of its drilling. The company “should have been penalized as per the provisions of the law,” the report said. The company responded to questions about the report by saying it has now obtained all the required water and land use permits.
Global Affairs Canada spokesperson Sabrine Barakat, in response to questions from The Globe, would not confirm the department’s role in the matter. She said the department “does not comment on RCMP matters and does not accept criminal complaints for referral to the RCMP.” ReconAfrica, in response to questions from The Globe, said it was “not aware of the alleged RCMP investigation, ongoing or otherwise.”