A fraud case that could lead to potential losses of USD 125 million has been revealed at OW Bunker´s Singapore-based subsidiary Dynamic Oil Trading.
According to a press release from OW Bunker, the management group was yesterday informed about the issue committed by senior employees in Dynamic Oil Trading (DOT). The case is still under investigation and the extent of the fraud is not yet clear, but preliminary findings suggest a potential loss of around USD 125 million.
"Isolated from the above, a review of OW Bunker's risk management contracts has revealed a significant risk management loss in addition to the loss of USD 24.5 million announced on October 23, 2014 (Company Announcement 23/2014). As of today, the mark to market loss is around USD 150 million," OW writes in the release.
In order to reduce risk management exposure to an absolute minimum level, risk management contracts are currently being unwound.
Something was wrong
As a consequence of the risk management loss, Head of Risk Management and EVP Jane Dahl Christensen has been dismissed with immediate effect.
The above events affect OW Bunker's operations and credit facilities. OW Bunker is currently in discussions with the syndicate banks. The group will inform the market further as soon as possible.
Already yesterday it was apparent that something was wrong at OW. The company, which went public as early as this spring, had its shares put on hold at The Copenhagen Stock Exchange. Late in the evening, ShippingWatch could report that substantial irregularities had merged at the Singapore office and two individuals working with the company have been interrogated about their involvement in the case.