Oil trader Hin Leong overstated derivatives profits by $2.1 bln - PwC report

Embattled oil trader Hin Leong accumulated $808 million of losses over the past 10 years, which were in turn hidden from banks and other financial partners through a $2.1 billion overstatement of derivatives trading profits, according to its judicial manager, PricewaterhouseCoopers.

PwC, which was appointed as a manager of the Singapore trader after debtor banks successfully appealed for it to be wound up, submitted the report via law firm Rajah & Tann on Monday June 22 in court filings seen by Fastmarkets. The PwC report concludes that documents needed as proof of sales to banks and counterparties were forged in a "routine and pervasive" scheme, while Hin Leong Trading used a web of inter-bank transfers to inflate its balance sheet. It also sheds light on a top-down leadership structure in the company, one of Singapore's largest independent commodity trading houses, where owner and founder OK Lim was both the chairman and at times its only active trader, taking...

Published

Archie Hunter

June 24, 2020

16:13 GMT

London