Business

Official: Aegean auditors alleges up to $300 million ‘misappropriated’

Principal beneficiary is Fujairah-based OilTank Engineering & Consulting contract with Aegean subsidiary.

Published

6 years ago

November 5, 2018

Admin

Up to USD $300 million of cash from New York-listed bunkering firm Aegean Marine Petroleum Network (Aegean)’s accounts and other assets were misappropriated through fraudulent activities, alleges its audit committee.

Earlier on June 2018, the committee believed that approximately USD $200 million of accounts receivable on the Aegean’s books and records at December 31, 2017 would need to be written off.

To date, it now believes up to USD $300 million of the company cash and other assets were misappropriated through fraudulent activities.

It claims the principal beneficiary of the misappropriation is OilTank Engineering & Consulting Ltd. (OilTank), a company based in Fujairah and incorporated on March 15, 2010 in the Marshall Islands.

On March 31, 2010 OilTank entered into a contract with Aegean’s subsidiary to oversee the construction of the Fujairah Oil Terminal Facility; the audit committee believes that this contract was used to misappropriate Aegean’s funds through inflated contracts and fraudulent pricing.

The audit committee has reason to believe that OilTank is controlled by a former affiliate of Aegean.

“As of December 31, 2017, the company and/or its subsidiaries had an aggregate of approximately USD$200 million in accounts receivable that arose from purported commercial transactions that occurred in 2015, 2016, and 2017,” states the audit committee.

“These transactions lacked economic substance as the relevant counterparties were shell companies with no material assets or operations and were owned or controlled by former employees or affiliates of the company.

“The audit committee believes that the receivables were improperly recorded as part of a scheme to facilitate and conceal an extensive misappropriation of company assets channelled to OilTank, but accounted for as transactions with these shell companies. The audit committee has further confirmed that the approximately US$200 million of receivables are uncollectible and will be written off.”

The Investigation also uncovered additional actions to defraud Aegean and/or its subsidiaries, including prepayment for future oil deliveries that were never made. These fraudulent activities appear to have commenced as early as 2010.

The misappropriation of Aegean’s assets, and the fraudulent accounting entries and fictitious documentation designed to conceal it, involved over a dozen company employees, including members of senior management.

The employees who directed the scheme, which involved the creation of falsified and forged documents, including bank statements, audit confirmations, contracts, invoices and third party certifications, among others, have been terminated.

“The audit committee believes that this misconduct occurred in part because a former affiliate of Aegean has exerted significant control over company personnel and assets through various inappropriate means, including threats of economic retaliation and physical violence,” it states.

“In addition, the former affiliate continues to have access to and control over the company’s electronic and physical files.”

The audit committee, meanwhile, says attempts to access relevant emails and other electronic data stored on Aegean’s server were and continue to be obstructed as a result of, among other things, the threats of retaliation against company personnel, and at least one attempt to delete and permanently erase documents from the company’s server through the remote installation of data deletion software by a person with administrator access.

The committee is also currently actively litigating a Hellenic Data Privacy Authority (HDPA) issued provisional order which prohibits the review or use of emails and other files were collected from Aegean’s Piraeus, Greece server in connection with the investigation, due to a 22 June 2018 complaint by the former affiliate and related parties.

Based on the above development, the audit committee has concluded Aegean’s financial statements for the fiscal years ended December 31, 2015 and December 31, 2016; the periods ended March 31, 2017, June 30, 2017, September 30, 2017; as well as the fourth quarter of each of 2015, 2016 and 2017 “should no longer be relied upon”.

Moving forward, it intends to work with Aegean’s auditors, PricewaterhouseCoopers S.A. (2016 and 2017) and Deloitte Certified Public Accountants S.A. (2015), to determine the individual and net effect of the inaccurate accounting entries and the theft of company assets.

A timeline organised list of events preceding the current development have been recorded by Manifold Times below:

Published: 5 November, 2018

Business

Singapore: Ang Wee Keong from IMDA appointed as new MPA Chief Executive

Ang will relinquish his IMDA appointment as Assistant Chief Executive (International) of the Info-Communications and will officially take over from Teo Eng Dih from 16 June.

Published

2 hours ago

April 30, 2025

Admin

Singapore: Ang Wee Keong from IMDA appointed as new MPA Chief Executive

Singapore’s Ministry of Transport on Tuesday (29 April) said Mr Ang Wee Keong, currently the Assistant Chief Executive (International) of the Info-Communications Media Development Authority (IMDA), will concurrently be appointed as Chief Executive (Designate) of the Maritime and Port Authority (MPA) from 1 May to 15 June 2025.

He will relinquish his IMDA appointment and be appointed Chief Executive of MPA from 16 June 2025. He will succeed Mr Teo Eng Dih, who will be appointed Deputy Secretary (Special Duties) at the Ministry of Transport with effect from 16 June.

Mr Teo will remain as a member of the MPA Board until he steps down as CE MPA. Mr Ang will be appointed as a board member with effect from 16 June 2025.

“The Ministry of Transport thanks Mr Teo Eng Dih for his leadership and contributions as Chief Executive of MPA, and welcomes Mr Ang Wee Keong,” the ministry added.

Mr Teo Eng Dih (张英智)

As the Chief Executive of the MPA, Mr Teo made significant contributions to grow Singapore’s International Maritime Centre and the PIER71TM startup ecosystem. During his tenure, the Port of Singapore attained new records in vessel arrivals, container throughput, bunker sales and registrations under the Singapore Registry of Ships. MPA was also recognised as one of the key global regulators by Lloyd’s List. These milestones were reached amidst a complex global operating environment marked by geopolitical uncertainties, supply chain disruptions and technological shifts affecting the flow of goods and supplies worldwide.

Mr Ang Wee Keong (洪伟强)

As the Assistant Chief Executive (International) of IMDA, Mr Ang made significant contributions in advancing Singapore’s digital interests and thought leadership in the international arena. He strengthened Singapore’s network of digital economy partnerships, and expanded collaboration through platforms like the ASEAN Digital Ministers’ Meeting, Forum of Small States and Asia Tech x Singapore (ATxSG). He also oversaw the formulation of forward-thinking policies and regulations in digital technology and services to advance the growth of Singapore’s digital economy, including the upcoming Digital Infrastructure Act to enhance the resilience and security of systemically important digital infrastructure.

Photo credit: Singapore Polytechnic
Published: 30 April, 2025

Technology

TFG Marine to launch of ZeroNorth e-BDNs at Port of Sohar after Singapore success

Kenneth Dam announced the successful trial and imminent roll-out of ZeroNorth’s electronic bunker delivery note solution for its customers in the Port of Sohar, in Oman.

Published

2 hours ago

April 30, 2025

Admin

TFG Marine to launch ZeroNorth e-BDNs at Port of Sohar after success in Singapore

Global marine fuel supply and procurement firm TFG Marine on Tuesday (29 April) announced the company’s successful trial and imminent roll-out of ZeroNorth’s electronic bunker delivery note (e-BDN) solution for its customers in the Port of Sohar, in Oman.

A first for the Middle East region following the successful deployment of the same technology earlier this year by TFG Marine at the Port of Singapore. The eBDN trial in Oman was completed in collaboration with ZeroNorth and SGTraDex, using the Singapore standards as a benchmark.

Kenneth Dam, Global Head of Bunkering, said: "We’re excited to partner with ZeroNorth, Fratelli Cosulich Group Bunkers, SGTraDex and SOHAR Port and Freezone to shortly introduce e-BDNs to our customers here in Oman.”

“This technology, that we have already successfully introduced in Singapore is yet another step in modernising our industry. It will streamline the bunker delivery process, cut administrative burdens, enhance digital documentation and help build a smarter, more connected bunkering sector.”

“We remain committed to establishing e-BDNs as a global standard for bunker fuel delivery and will continue to work closely with port authorities to advocate for and deploy this technology across our operations.”

Dam made the announcement at the Oman Maritime, Ports and Energy Forum, during the panel discussion on The Transformative Power of Data: The Evolving Role of Digitalisation in Shipping and Bunkering.

Dam added the fully digital solution — accessible through TFG Marine’s mobile app and integrated with SGTraDex’s digital infrastructure, — will enable the inclusion of additional data, such as mass flow meter readings during fuel deliveries.

“By integrating this technology, we will drive significant improvements in efficiency, accuracy, compliance, and sustainability across our operations, complementing the global mass flow meter rollout across our fleet and reinforcing TFG Marine’s position at the forefront of the modern bunkering industry,” he said.

Manifold Times previously reported TFG Marine announcing the introduction of ZeroNorth’s e-BDNs for its customers in Singapore during 23rd Singapore International Bunkering Conference (SIBCON) by the end of 2024.

In November last year, TFG Marine announced its first digitalised marine fuel delivery in Singapore using electronic bunker delivery notes (e-BDNs).

Its team supplied VLSFO bunker fuel to Pacific Basin Shipping Limited’s Illovo River bulk carrier, marking the first of four bunkering deliveries that month where this new technology was successfully deployed.

Photo credit: TFG Marine
Published: 30 April, 2025

Biofuel

Hercules Tanker Management vessel “Mount Kibo” takes on B30 bio bunker fuel

HTM said its tanker was successfully supplied with B30 bunkers by tanker “Hercules Sky”, another HTM-owned vessel and operated by Peninsula, marking the first biofuel supply to the HTM fleet.

Published

2 hours ago

April 30, 2025

Admin

Hercules Tanker Management vessel “Mount Kibo” takes on B30 bio bunker fuel

Hercules Tanker Management (HTM) on Tuesday (29 April) announced that its tanker Mount Kibo has been successfully supplied with B30 bunkers by tanker Hercules Sky, another HTM-owned vessel which is operated by Peninsula.

The operation marked the first biofuel supply to the HTM fleet.

HTM is the shipping venture launched last September by John A. Bassadone, founder and CEO of independent marine fuel supplier Peninsula.

HTM said the operation carried out in the Strait of Gibraltar aligns with the recent discussions at MEPC 83, where key decisions were made to advance maritime decarbonisation, including new fuel standards and a global pricing mechanism for emissions.

“Additionally, this initiative supports the objectives of the FuelEU Maritime Regulation, which promotes the use of renewable, low-carbon fuels and clean energy technologies for ships,” it said.

“By utilising biofuels, we are contributing to the reduction of greenhouse gas emissions and supporting the industry's transition towards cleaner energy solutions.”

Photo credit: Hercules Tanker Management
Published: 30 April, 2025