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Tuesday, 07 October, 2008, 14:40 GMT | more prices >>

SembCorp moves towards forex deal



By Upstream staff 

SembCorp Marine has reached full settlement with nine of the 11 banks affected by what the Singaporean giant claims were unauthorised foreign exchange transactions carried out in 2007 by Wee Sing Guan, its former director of group finance.

On 22 October last year, SembCorp announced that Wee had entered into various unauthorised foreign exchange transactions for the account of one of its wholly-owned subsidiaries, Jurong Shipyard.

Wee has since left the company. He disputes the allegations, maintaining the yard’s board was fully aware of all transactions.

Today SembCorp said it has now reached final settlements with nine of the 11 banks on a commercial basis.

The total amount outstanding to banks as a result of the foreign trades is currently stands at $258.7 million, according to SembCorp. Of the $258.7 million, Societe Generale is to receive $198.9 million and BNP Paribas $50.7 million. Other banks will receive $9.1 million.

The $50.7 million claimed by BNP is still disputed. BNP claims that the transactions were made with the right authorisation and is threatening to file a petition against Jurong Shipyard in a bid to recover the losses it incurred when the currency trades made by Wee went bad.

SembCorp rejects the claims and is seeking an injunction to stop BNP from carrying out its threat in a case to be heard in Singapore from 4 March to 6 March.

Meanwhile, Societe General, which has already been paid $115.5 million, has agreed to refund the amount if SembCorp can prove it is not liable for the losses.


Thursday, 14 February, 2008, 12:25 GMT  | last updated: Thursday, 14 February, 2008, 13:04 GMT

Settlment: SembCorp has settled with 9 of 11 banks over foreign exchange trade row
 

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