Asia/Pacific News
Update 1: MPA Rejects Claim it Could Have Averted OW Bunker Bankruptcy
- UPDATE 1: Updated with link and source to subsequently released MPA statement
The Maritime and Port Authority of Singapore (MPA) Thursday rejected allegations levelled by Iceberg Research (Iceberg) that it had the opportunity to avert the collapse of OW Bunker, and that there had been any malpractice at Noble Group Ltd's (Noble) bunkering business prior to its exit from the market in 2013.
"In 2013, the Maritime and Port Authority of Singapore (MPA) received information on the conduct of Noble Resources International Pte Ltd (NRIPL). Our investigation of NRIPL however did not find any malpractices," the MPA said.
"MPA subsequently did not renew NRIPL's bunker supplier licence as it did not fulfil its licence commitments, such as meeting the required delivered volume and the number of bunker tankers deployed, and not for any breach of our regulations."
At the time of its exit in September 2013, Noble declined to comment on the matter and MPA, who typically make a statement in the event that a bunker licence is either canceled, declined for renewal, or that there are any other notable circumstances surrounding a supplier's exit from the market, also did not comment on the matter at the time.
Little is known about Iceberg, and Reuters said representatives from the firm did not immediately respond to a request for comment about MPA's statement.
OW Bunker
As Ship & Bunker reported on Tuesday, Noble is taking legal action against Iceberg after it released a number of reports alleging accounting and governance irregularities at Asia's largest commodities trader by sales.
Noble's share price has fallen from a three-month high of S$1.205 ($0.88) just prior the the release of Iceberg's first report, to a three-month low of S$0.85 ($0.62) last Thursday.
Last weekend Iceberg released a third report that also alleged links between players involved in the alleged malpractice at Noble to the bankruptcy of OW Bunker.
"The assertion by Iceberg Research that 'Had the MPA acted on the information sent to them, this high profile bankruptcy leaving hundreds of millions due to creditors unpaid could certainly have been avoided' is also untrue," MPA said.
"No relevant information about OW Bunker, including from Iceberg Research, was furnished to the Singapore authorities before OW Bunker's bankruptcy."
In November 2014 OW Bunker management said it had been hit by a "significant risk management loss" of $150 million plus a $125 million loss at Singapore subsidiary Dynamic Oil Trading (DOT), which it described as a fraud.
It has since been revealed that the alleged fraud consisted of large amounts of credit extended by DOT to Tankoil Marine Services Pte. Ltd. (Tankoil) and to a lesser extent, Petrotec Pte Ltd (Petrotec).
Both Tankoil and Petrotec have been linked to each other through a common director, Dennis Tan.
Following the bankruptcy of OW Bunker persons acting on behalf of DOT have denied any wrongdoing, and that while there might have been an "untimely lack of care" nothing illegal took place and that OW Bunker management knew about DOT's dealings with Tankoil.
Noble, meanwhile, has rejected Iceberg's allegations as "inaccurate, unreliable and misleading" and something that had been "calculated primarily to inflict damage rather than to facilitate the distribution of research."
