Trafigura Warns of Potential $1.1 Billion Loss From 'Serious Misconduct' in Mongolian Unit

by Ship & Bunker News Team
Thursday October 31, 2024

Global commodity trading company Trafigura has warned it may have lost as much as $1.1 billion from 'serious misconduct' among employees of its Mongolian refined products supply business.

Individuals in the Mongolian business allegedly manipulated data and documents, resulting in inflated sums being paid by Trafigura, and deliberately concealed overdue receivables, the company said in a statement on its website on Wednesday.

This resulted in 'a significant exposure' for the group over five years, the firm said.

"A substantial proportion of the total exposure has been acknowledged as a debt owed to Trafigura by our principal counterparty in Mongolia," the company said in the statement.

"We intend to hold the counterparty to their repayment obligation. 

"Taking a conservative view of expected debt recovery, however, we expect to record a total provision of US$1.1 billion.

"While the accounting treatment under IFRS is subject to final audit, it is likely that Trafigura will be required to restate prior year comparative figures in its 2024 financial statements, in accordance with International Accounting Standard (IAS) 8."

The firm will report full-year results for the year to September 30 in December.

Ship & Bunker News Team
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