‘This deal never existed,’ says witness from Unipec on oil contract with Hin Leong

AN EXECUTIVE at Unipec Singapore, who once dealt regularly with Hin Leong Trading (HLT)‘s “big boss” Lim Oon Kuin for trades involving gas oil and diesel products, denied ever receiving an e-mail that was purportedly sent to him by HLT’s trading team.

The e-mail contained a purported US$55.8 million contract for the sale of ultra-low sulphur diesel by HLT to Unipec that was apparently concluded in March 2020.

“I have never received this e-mail. When the police came to ask us – our company – the IT department and I did a check on servers and historical records. No such e-mail was found,” said Unipec Singapore’s deputy general manager Peter Li Yue. Unipec Singapore is wholly owned by China’s energy-based trading company Unipec.

Li was responding to a question by deputy public prosecutor Kelvin Chong during his examination-in-chief on the 23rd day of the criminal trial involving cheating and forgery charges against Singapore’s former oil tycoon Lim, better known as OK Lim, at the State Court on Tuesday (Jun 6).

“In March 2020, were you involved in any discussions concerning the deal stated in this e-mail?” asked Chong.

“This deal never existed... there was no such discussion regarding this contract,” replied Li, who is the prosecution’s seventh witness in the trial that began on Apr 11.

Li also pointed out that the purported sales contract that was shown in court on Tuesday was “unlike our usual trades” as it involved “two to four shipments”, when it would usually involve merely one shipment for similarly concluded deals.

In reference to a tax invoice with a HLT letterhead on the purported sales contract with Unipec on May 4, 2020, that was presented in court, he said the trade “did not exist”. According to him, HSBC staff had in 2020 sent a scanned copy of the invoice to Unipec’s chief financial officer to confirm if there was such a trade. Following checks and verifications, the traders and administrative staff at Unipec said there was no such trade.

He also said the bill of lading (BL) attached to the invoice “did not exist”.

“We checked our e-mail system... all our colleagues’ inboxes and we did not find such a BL before HSBC sent to us.  I can confirm that whether it was me or my colleagues, there was no such deal,” said Li. 

Singapore prosecutors have accused Lim of cheating HSBC by representing to the bank, through HLT’s employees, that the company had entered into a contract for the sale of oil with Unipec. They say that the underlying transaction between HLT and Unipec was a fabrication and that the contract, invoice and BL submitted in support of a discounting application were forged or fabricated by HLT employees on Lim’s instructions.

The 81-year-old Lim, clad in a navy jacket and a mask, sat in a wheelchair in the dock through the proceedings. He was once regarded an icon in the sector till his empire crumbled three years ago on hefty debts and fraud allegation.

Another contract with China Aviation Oil for the purported sale of oil worth US$56.1 million by HLT is the other key transaction that is central to the prosecution’s cheating and forgery charges against Lim.

As a result of these “deceptions”, prosecutors said HSBC was dishonestly induced into disbursing some US$112 million to HLT.

The hearing before Judge Toh Han Li continues, and will take place over several dates till Jul 20.