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BP Singapore bunker trial: State Courts Judge to present sentencing verdict coming May

Global sentence adjusts to 80 month’s imprisonment term for both Chang and Koh under application of the Masui sentencing framework; fine of SGD 6.2 million against Chang remains unchanged.

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Singapore bunker publication Manifold Times was present at the BP Singapore bunker trial on Monday (29 March). The following report represents a summarised extract of the morning’s hearing:

The BP Singapore bunker trial continued on Monday (29 March) morning at the State Courts of Singapore where District Judge Ong Chin Rhu heard recommendations for a revised sentencing framework for the accused parties.

Judge Ong has earlier found the Executive Director of Pacific Prime Trading (PPT), Koh Seng Lee, and former Regional Marine Manager of BP Singapore, Clarence Chang each guilty of 19 charges under Section 6(b) and 6(a)  as well as 1 charge under s 5(b)(i) and 5(a)(i) of the Prevention of Corruption Act, Cap 241., otherwise known as the Prevention of Corruption Act which is the primary anti-corruption law in Singapore.

In September 2020, DPP Jiang Ke-Yue and DPP Loh Hui-min had submitted for a 92-month imprisonment sentence for both Koh and Chang and proposed a new sentencing framework for corruption offences.

The latest hearing in late March saw both DPPs submitting on the application of a revised sentencing framework for corruption offences, which was recently pronounced by the High Court in Takaaki Masui v Public Prosecutor and another appeal and other matters [2020] SGHC 265 (known as the Masui sentencing framework).

Based on an application of the Masui sentencing framework, the global sentence that the Prosecution is seeking for Koh and Chang was reduced to 80 month’s imprisonment (from the earlier 92-month). The earlier total penalty of SGD 6.2 million (exact: SGD 6,220,095) that Prosecution is seeking against Chang remains unchanged.

To enforce the penalty, the DPPs asked Judge Ong to appoint a receiver to take possession of and realise Chang’s properties; or for Chang to otherwise serve an additional default sentence of 30 month’s imprisonment – which they hoped to avoid.

“Taking Chang’s last known gross monthly salary of $28,000 (assuming that he will be able to earn the same amount in the future), it will take him roughly 17 years to earn the penalty amount of S$6,220,095,” they stated in court documents obtained by Manifold Times from the Attorney-General’s Chambers.

“In comparison, the maximum in-default imprisonment term which may be imposed is 30 months pursuant to s 319(1)(d)(i) CPC (being half of the maximum term of imprisonment fixed for the PCA offence).

“In the premises, the perverse incentive is clear and allowing Chang to ‘elect’ to serve the in-default imprisonment term would mean allowing his family and him to continue to be unjustly enriched by his criminal activities. It is thus submitted that an in-default imprisonment term should only be imposed as a measure of last resort.”

Megan Chia, Partner at Tan Rajah & Cheah, who represents Koh believed the development was unfair to her client.

“We submitted that BP has only something to gain and not something to loose. There is no evidence of BP losing anything,” she insisted.

Melanie Ho, Deputy Head of Specialist & Private Client Disputes Practice at WongPartnership, who represents Chang stated there was still no evidence of BP Singapore encountering any “actual loss” from its relationship with PPT.

“PPT already had staff authorised by BP who sat within the BP offices. This was approved from bottom to top and everyone knew. They had BP addresses, BP passes, and access to BP computers,” she said.

“Prior to all this, PPT was heading to be the top three trading counterparty of BP; so who benefits? Conversely, BP we say benefited. This was exactly what the lawyer for the first accused mentioned.

“If BP did not benefit there was absolutely no reason for them to continue business with PPT for five years. Your honour has heard the evidence […] logically will this conversation will be happening if there was detriment?”

The matter has been scheduled for hearing in May where Judge Ong will present the sentencing verdict.

Editorial coverage by Manifold Times regarding earlier court sessions of the BP Singapore bunker bribery trial are organised in descending chronological order (latest to earliest) below:

Related: BP Singapore bunker trial: Court hearing adjourned to late March 2021 [Short update]
Related: BP Singapore bunker trial: DPP proposes 92-month imprisonment sentence for guilty parties
RelatedBP Singapore bunker trial: Judge finds suspects guilty of corruption, sentencing in September
RelatedBP Singapore bunker trial nears end as legal reps present summary submissions
RelatedBP Singapore bunker trial: Last minute evidence surfaces at State Courts
RelatedBP Singapore bunker trial: Former Ops Manager cross examined
RelatedBP Singapore bunker trial: Cross examination of ex-Regional Marine Manager starts
RelatedBP Singapore bunker trial: Former Market Manager takes to stand as witness
RelatedBP Singapore bunker trial: Pacific Prime Trading Director cross examination continues
RelatedBP Singapore bunker trial: Pacific Prime Trading Director undergoes cross examination
RelatedBP Singapore bunker trial: Prosecution and Defence present submissions (Part 2)
RelatedBP Singapore bunker trial: Prosecution and Defence present submissions (Part 1)
RelatedBP Singapore bunker bribery case update: BP bunker trade data in question
RelatedBP Singapore bunker bribery case update: CPIB officer takes to the stand
RelatedUPDATE: BP Singapore bunker bribery case
RelatedBP Singapore bunker bribery case continues

 

Photo credit: Manifold Times
Published: 30 March, 2021

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Winding up

Singapore: DBS Bank submits court winding up application against AMS Marine

Bank is a creditor AMS Marine, part of the AMS Marine Group compromising of a sister firm in Malaysia.

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DBS Bank on 6 June submitted a winding up application to the High Court of the Republic of Singapore against Singapore-based AMS Marine Pte Ltd, according to a Government Gazette post on Friday (13 June).

The bank is a creditor AMS Marine, part of the AMS Marine Group compromising of a sister firm in Malaysia offering a full suite of engineering services encompassing piping, steelworks, and afloat repair to oil & gas vessels.

The winding up application is directed to be heard before the Judge sitting in the General Division of the High Court of the Republic of Singapore at 10.00 a.m. on 4 July 2025.

Any creditor or contributory of AMS Marine desiring to support or oppose the making of an order on the winding up application may appear at the time of hearing by himself or his counsel for that purpose.

A copy of the winding up application will be furnished to any creditor or contributory of AMS Marine requiring the copy of the winding up application by the undersigned on payment of the regulated charge for the same.

The Claimant’s address is 12 Marina Boulevard, Marina Bay Financial Centre Singapore 018982. The Claimant’s solicitors are Shook Lin & Bok LLP of 1 Robinson Road #18-00, AIA Tower, Singapore 048542.

Note: Any person who intends to appear on the hearing of the winding up application must serve on or send by post to the Claimant’s solicitors, notice in writing of his intention to do so. The notice must state the name and address of the person, or if a firm, the name and address of the firm, and must be signed by the person, firm, or his or their solicitor (if any) and must be served, or, if posted, must be sent by post in sufficient time to reach the abovenamed not later than 30 June 2025 (at least 3 clear working days before the day appointed for the hearing of the winding up application).

 

Photo credit: Manifold Times
Published: 16 June 2025

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Legal

Helmsman on Inter-Pacific Petroleum legal battle: When ignorance meets fraud

Lester Ho, Associate Director of law firm Helmsman shared his timely key takeaways on the recent case of Goh Jin Hian against defunct Singapore bunker supplier Inter-Pacific Petroleum.

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Lester Ho Helmsman

Lester Ho, Associate Director of multi-disciplinary law firm Helmsman LLC shared his timely key takeaways on the recent case of Goh Jin Hian v Inter-Pacific Petroleum when the Appellate Division of the High Court in Singapore overturned the High Court’s finding that Mr Goh’s breach had caused IPP to incur the losses:

The collapse of a company often prompts a search for blame, especially where the downfall stems from deliberate misconduct such as fraud that appears avoidable in hindsight. Unsurprisingly, a company’s directors are frequently perceived as the root of the problem and become prime suspects in the inevitable witch hunt for accountability. The recent case of Goh Jin Hian v Inter-Pacific Petroleum Pte Ltd (in liquidation) [2025] SGHC(A) 7 is a timely reminder of a director’s duties as well as the legal risks in the event of breach.

The downfall of Inter-Pacific Petroleum Pte Ltd (“IPP”) is well-documented. The Maritime Port Authority of Singapore suspended IPP’s bunker craft operator licence after discovering that the mass flow meter of a bunker tanker chartered by IPP had been tampered with. Concerns raised by IPP’s banks in relation to its business led its non-executive director, Mr Goh Jin Hian, to discover that it was heavily indebted to the banks. It was also discovered that the facilities had been used on sham sale and purchase transactions.

IPP was subsequently placed in compulsory liquidation, and Mr Goh was sued for breach of his director’s duties. It was alleged that the sham transactions could have been prevented had Mr Goh discharged his duties and that he was therefore responsible for IPP’s losses. At first instance, the High Court found that Mr Goh had breached his duty of care and ordered him to compensate IPP for approximately US$146 million in losses (Inter-Pacific Petroleum Pte Ltd (in liquidation) v Goh Jin Hian [2024] SGHC 178). Among other things, the High Court found that Mr Goh was in breach because he was entirely ignorant of IPP’s cargo trading business.

The Appellate Division of the High Court upheld the finding that Mr Goh had breached his duty for having been unaware of IPP’s cargo trading business. However, it overturned the High Court’s finding that Mr Goh’s breach had caused IPP to incur the losses. The Appellate Division found that IPP failed to prove that Mr Goh would have uncovered the sham transactions even if he had discharged his duty. Accordingly, Mr Goh was absolved of his liability to compensate IPP.

There are two broad takeaways from the decision.

The first takeaway is that every director, both executive and non-executive, is held to a minimum standard of care. This standard requires directors to take reasonable steps to put themselves in a position where they can guide and monitor the management of the company. Put simply, ignorance of a company’s business is no defence, even for non-executive directors that are not involved in everyday operations. Accordingly, although Mr Goh was a non-executive director, the fact that he was unaware that IPP was carrying on the business of cargo trading meant that he was in breach of his duties.

It may be surprising that a director could be entirely unaware of an important part of a company’s business. But the reality is that modern day companies have become commercial behemoths with complex and layered operations that makes it all too easy for directors (especially non-executive directors) to delegate oversight over critical business decisions and lose visibility of what their companies do. It is therefore important for directors, regardless of their formal titles, to ensure that there is a robust chain of reporting and command such that they have sufficient knowledge of the company’s operations to discharge their duties.

The second is that, while the law imposes high standards on directors, it does not demand unrealistic standards. As noted, the Appellate Division accepted that Mr Goh had breached his duties for having been unaware of IPP’s cargo trading business. However, it was not persuaded that, even if Mr Goh had discharged his duties and had been properly informed of IPP’s activities, the sham transactions could have been prevented. IPP was affected by what the Appellate Division considered a “deep-seated fraud” that had gone undetected even by IPP’s auditors. In the circumstances, it was far from clear that Mr Goh could have prevented the loss even if he had discharged his duty.

However, just because the law does not expect directors to be superhuman does mean that directors can afford to be complacent. Directors would still do well to take reasonable and diligent steps to ensure that they have a good grasp of the company’s operations and engage competent professionals (e.g., auditors) to help surface risks that they may otherwise miss. In a sense, Mr Goh avoided liability not because his breach was minor, but because the extent of the fraud perpetrated meant that the gravity of his breach cannot be said to have caused the loss. In other words, a less sophisticated or extensive fraud might have yielded a drastically different outcome – directors should take heed.

A timeline organised list of events preceding the current development of Inter-Pacific Petroleum has been recorded by Manifold Times below:

Related: Singapore: Ex-Director of Inter-Pacific Petroleum wins appeal against former company

Related: Singapore: Ex-Director of Inter-Pacific Petroleum appeals High Court decision
Related: Singapore: Former auditors of Inter-Pacific Petroleum undergo private oral examination at court
Related: Singapore: Civil trial between Inter-Pacific Petroleum and Dr Goh Jin Hian begins
Related: Former Singapore Director of Inter-Pacific Petroleum sued for USD 156 million
Related: Inter-Pacific Petroleum creditors authorised to fund lawsuit against former Director
Related: New Silkroutes under investigation over possible breach of Securities and Futures Act
Related: Judicial Managers considering to take former Singapore Director of Inter-Pacific Petroleum to court
Related: Singapore: Inter-Pacific Group receives winding up order from High Court
Related: Singapore: Inter-Pacific Group files for winding up application at High Court
Related: MPA revokes Inter-Pacific Petroleum Pte Ltd bunker supplier licence
Related: Co-heads of Trade and Commodities Finance for Asia-Pacific leave SocGen
Related: Inter-Pacific Group, Inter-Pacific Petroleum to hold creditors’ meet
Related: NewOcean detains Singapore-flagged bunker tanker “Pacific Energy 28”
Related: SocGen lawsuit against NewOcean Petroleum dropped, party to counterclaim
Related: MPA revokes Inter-Pacific Petroleum bunker craft operator licence
Related: Magnets on MFMs: Trial starts for former bunker clerk of “Consort Justice
Related: First suspect charged over MFM tampering in landmark case
Related: With nearly $180 million of debt, IPP proposes interim judicial management
Related: Inter-Pacific Group, Inter-Pacific Petroleum under judicial management
Related: Magnets on MFMs: “Consort Justice” crew pleads ‘not guilty’ to tampering charge
Related: IPP responds to temporary suspension of bunker craft operator licence
Related: MPA temporarily suspends IPP bunker craft operator licence
Related: Singapore: Bunker Cargo officer, crew face charges over alleged MFM tampering

 

Photo credit: Helmsman
Published: 13 June, 2025

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Biofuel

BIMCO subcommittee launched to develop bio bunker fuel clause for time charters

Newly formed subcommittee marks a proactive step toward addressing legal and operational challenges posed by the growing use of biofuels in shipping.

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International shipping association BIMCO on Wednesday (4 June) launched a new subcommittee to develop a Biofuel Clause for Time Charter Parties, marking a proactive step toward addressing the legal and operational challenges posed by the growing use of biofuels in shipping. 

With regulatory frameworks like the EU ETS, FuelEU Maritime, and the upcoming IMO Net-zero Framework measures reshaping fuel strategies, biofuels are becoming an increasingly attractive option for reducing emissions. Yet, their integration into charter agreements remains complex, often raising questions around fuel quality, engine compatibility, and liability. 

The newly formed subcommittee, comprising shipowners, charterers, P&I representatives and technical experts, met for the first time on 7 April 2025. Its work will focus on defining the scope and standards for biofuels, clarifying how they may be supplied and handled, and ensuring that their use aligns with performance expectations and regulatory obligations. 

The clause will also consider the practical realities of biofuel use, such as blending with conventional fuels, onboard storage, and the implications for speed and consumption warranties. By addressing these issues, BIMCO aims to provide a flexible yet robust contractual solution that supports compliance without compromising vessel reliability. 

A draft clause is expected to be presented at BIMCO’s Documentary Committee meeting in October 2025. Once adopted, it will offer much-needed clarity for charterers and owners navigating the transition to low-carbon operations.

Related: BIMCO adopts FuelEU Maritime clause for charter parties

 

Photo credit: BIMCO
Published: 9 June, 2025

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