Wilmar’s China unit denies role in 5 billion yuan loss by state enterprise from alleged fraud

WILMAR International ’s China unit has become embroiled in an alleged fraud that has led to billions of losses for a state-owned enterprise there.

The company’s mainland-listed Yihai Kerry Arawana Holdings on Friday (Jan 12) issued a statement denying allegations that one of its business units was partially responsible for a fraud that led to a 5.2 billion yuan (S$973.3 million) loss for state-owned trading company Anhui Whywin International Co.

The unit, Yihai (Guangzhou) Grain and Oil (Guangzhou Yihai), has been sued by the public prosecutor as an “accomplice” in contract fraud related to palm oil trades between Anhui Whywin and a privately owned counterparty, Yunnan Huijia Import & Export Co.