IBIA Welcomes Danish Authorities' Efforts Against Bunker Fraud

IBIA has welcomed efforts by the Danish authorities to investigate and bring to justice fraudulent activities in the bunker industry.

The International Bunker Industry Association (IBIA) Friday welcomed efforts by the Danish authorities to investigate and bring to justice fraudulent activities conducted by a bunkering company in the country.

As Ship & Bunker reported yesterday, the Court of Kolding found a Danish bunker company - the name of which is protected by court-ordered anonymity - guilty of a DKK24 million ($3.6 million) fraud against one of its customers.

"IBIA is encouraged by the fact that reports of these sorts of incidents are being investigated and, where necessary, relevant action is being taken by the courts," said Peter Hall, CEO of IBIA, adding that the organisation "is deeply concerned that the guilty verdict, together with other recent reports of bad practices, places the bunker industry in a poor light."

"I'd like to stress that the vast majority of bunkering transactions are carried out to the satisfaction of all parties in an ethical manner. Nevertheless, IBIA condemns any fraudulent industry practices without reservation and is working hard to promote best practice guidelines across the industry."

Henrik Zederkof, CEO of A/S Dan-Bunkering (Dan-Bunkering) and IBIA board member, says other companies in the sector, which are run in a professional manner should not have their reputations tainted by the fraudulent actions of others, and has expressed hope that the Danish case is a sign that criminal behaviour will not be tolerated.

As Ship & Bunker reported earlier Friday, Torben Østergaard-Nielsen, the CEO of Dan-Bunkering's principal A/S United Shipping & Trading Company (USTC), stated: "no person associated to USTC, Bunker Holding or any of our subsidiaries either in Denmark or abroad is under indictment in any kind of fraud case."

IBIA says it is working with all industry players to formally adopt best practices, advocate high standards, and promote licensing schemes that monitor and regulate operations in order to weed out fraudulent practices and improve operating conditions for ethically run businesses.

"IBIA also encourages all members to commit to increasing competence and raising professional standards across the industry," said IBIA, citing its recently published Standard Operating Procedure (SOP) for surveyors in Singapore as an example.

The organisation notes that it will be meeting with senior management of leading bunker ports as part of SIBCON in Singapore on October 4 with the intention to discuss the wider adoption of the IBIA Ports Charter.