Fraud of over S$400m alleged at Daewoo Singapore

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Fraud of over S$400m alleged at Daewoo Singapore

By Chan Hwa Loon, Channel NewsAsia

 

 

 

 

SINGAPORE : Commodity trading firm Daewoo Singapore is alleged to be embroiled in fraud involving more than S$400 million, and the High Court has ordered the company to be compulsorily wound up.

 

The company's creditor, Korea Asset Management Corp (Kamco), had asked for such a ruling because it was not satisfied with the firm being "voluntarily" wound up.

 

A probe commissioned by Kamco has alleged that a related company's debt of over S$400 million at Daewoo Singapore appeared to have been incurred in highly questionable and suspicious circumstances.

 

These circumstances point to not merely mismanagement, but fraudulent and wrongful acts on the part of the directors and officers of the company or its shareholders.

 

A compulsory liquidation will leave it to the Court to appoint an independent liquidator, instead of letting Daewoo Singapore appoint its own liquidator under voluntary liquidation.

 

Law firm Rajah & Tann, which is representing Kamco, says this is the first time in recent legal history that a Court has put a company into compulsory liquidation.

 

This is despite the company having already put itself into a voluntary winding-up. - CNA