Wilmar’s China subsidiary lodges appeal over contract fraud case
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Wilmar’s position is that Yunnan Huijia is attempting to implicate Guangzhou Yihai to shift responsibility for the losses.
PHOTO: ST FILE
Jessie Lim
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- Wilmar's subsidiary, Guangzhou Yihai, appeals a contract fraud verdict in China, ordered to pay 1.88 billion yuan in losses.
- Yihai Kerry Arawana (YKA), majority-owned by Wilmar, rejects the judgment, claiming innocence and asserting fraud by Yunnan Huijia.
- YKA supports its subsidiary's appeal, stating normal operations continue but the litigation's impact on future profits is uncertain.
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SINGAPORE - A subsidiary of Wilmar International has lodged an appeal in a Chinese court, after it was found guilty of contract fraud and ordered to bear losses amounting to 1.88 billion yuan
Yihai (Guangzhou) Oils & Grains Industries Co (Guangzhou Yihai) submitted a written appeal to the Anhui Provincial Higher People’s Court, Shenzhen-listed Yihai Kerry Arawana (YKA) said on Nov 28. Guangzhou Yihai is a subsidiary of YKA, which is 89.99 per cent owned by Wilmar.
“The second instance hearing in this litigation has yet to commence, and its impact on the company’s current period profits and future profits remains uncertain,” YKA said.
Guangzhou Yihai was sued by the public prosecutor in China in January 2024 as an “accomplice” in contract fraud related to palm oil trades between state-owned enterprise Anhui Huawen and a privately owned counterparty, Yunnan Huijia Import & Export Co. The alleged fraud led to a 5.2 billion yuan loss for Anhui Huawen.
Wilmar and YKA have rejected the judgment. YKA stated that it would “fully support” its subsidiary’s appeal.
The group argued that the fraud was perpetrated by Yunnan Huijia, which allegedly bribed senior executives and staff at Anhui Huawen to fabricate transactions. Wilmar’s position is that Yunnan Huijia is attempting to implicate Guangzhou Yihai to shift responsibility for the losses.
“Guangzhou Yihai neither participated in nor had knowledge of any fraudulent activities, nor did it engage in any acts of assistance,” YKA said.
At present, the production and operations of YKA and its subsidiaries are proceeding as normal, the company said. THE BUSINESS TIMES
