Connect with us

Business

Singapore: Dynamic Oil Trading claiming USD 103 million from Deloitte & Touche over alleged negligence

Deloitte issued a ‘clean, unqualified opinion’ for DOT’s financial year ended 31 December 2013 on 31 March 2014 in its Audit Report and did not raise any issues or concerns regarding DOT’s financial statements.

Admin

Published

on

OW Bunker and Dynamic Oil edited

Lawyers representing Dynamic Oil Trading (Singapore) Pte Ltd (in creditors’ voluntary liquidation and receivership) (DOT) and Deloitte & Touche LLP (Deloitte) were scheduled to be present at the General Division of The High Court of the Republic of Singapore on 11 April 2023.

DOT was looking to claim USD 103 million from Deloitte, which was engaged to perform audit of DOT’s financial statements ending 31 December 2013, due to alleged negligence, according to the Statement of Claim (dated January 2020) obtained by bunkering publication Manifold Times.

Background of KMPG involvement

KPMG Services Pte. Ltd. (KPMG) was appointed as joint and several provisional liquidators of DOT on 18 November 2014 and appointed as joint and several liquidators of DOT on 13 February 2015.

Prior to the development, Deloitte issued a “clean, unqualified opinion” for DOT’s financial year ended 31 December 2013 on 31 March 2014 in its Audit Report and did not raise any issues or concerns regarding DOT’s financial statements, highlighted KPMG in the Statement of Claim.

As such, DOT was unaware of misconduct by any of its senior management, officers, employees, and agents for its financial year ending 31 December 2013. 

“Based on this, DOT had, at all material times, been led to believe Deloitte did meet its audit obligations in respect of DOT for the 2013 Audit,” stated KPMG.

Issues between DOT, Petrotec and Tankoil

Petrotec Pte. Ltd. (Petrotec) was DOT’s primary trading partner from October 2012 to March 2013 and Tankoil Marine Services Pte Ltd (Tankoil) was its primary trading partner from March 2013 to early November 2014; both firms were collectively involved in approximately 85% of DOT’s business in 2013.

Tankoil was gradually wound up by DOT and ING Bank N.V. on 31 July 2015 and DOT has not been able to recover the overdue net balance of Tankoil’s liability to DOT amounting to approximately USD 156.3 million as of 18 November 2014 (the date when DOT entered into provisional liquidation).

KPMG, amongst discoveries, found a delay in the booking of invoices raised by DOT to Tankoil in DOT’s financial management systems giving rise to a misleading picture of DOT’s credit exposure in relation to Tankoil.

“Deloitte failed to carry out the necessary inquiries and investigations which would have led it to uncover the nonbooking or delayed booking of DOT’s invoices to Tankoil, which in turn would have enabled Deloitte to form the view that DOT did not keep proper accounting or other records and/or that its financial statements were not consistent or supported by DOT’s accounting or other records,” it stated.

When DOT entered provisional liquidation on 18 November 2014, DOT’s trade receivables amounted to approximately USD 330.5 million, of which approximately USD 222.9 million was due from Tankoil – where the gross balance due from Tankoil amounted to almost 70% of DOT’s total trade receivables.

“DOT’s trade receivables from Tankoil kept increasing in the course of 2013. This should have alerted Deloitte to make further inquiries and/or request further audit evidence as to how DOT was managing these trade receivables and why these trade receivables were not being collected,” said KPMG.

“Deloitte failed to raise issues or concerns with DOT with respect to the stated trade receivables and issued a clean, unqualified opinion.”

According to KPMG, a general trading pattern existed between Tankoil and DOT where Tankoil consistently charged DOT a unit price for bunker oil less than the unit price DOT charged Tankoil for bunker oil; essentially making a loss within this trading arrangement.

KMPG auditors further noted Lars Møller, the former managing director and finance manager of DOT, being charged with aggravated criminal breach of trust under the Danish Criminal Code on 12 July 2017 and convicted of the same on 30 May 2018 by the Court of Aalborg in Denmark. His conviction was enhanced by the 1st Division of the Danish Western High Court on 14 June 2019 to that of fraudulent abuse of a particularly gross nature.

“Had DOT been aware of its true financial position and/or the weaknesses in the design or operation of the accounting and internal control system, the full extent of the impairment of receivables due from Tankoil and/or the unlawful actions by Lars and/or any other officer, employee or agent of DOT would have been discovered earlier and in any event before November 2014 (when the OWB Group collapsed globally) or any earlier date on which DOT knew the extent of impairment of receivables and/or DOT would not have carried on trading with Tankoil and/or DOT’s shareholders would have placed DOT in liquidation earlier and would have avoided incurring further substantial amounts of unpaid receivables,” stated KPMG in the legal document.

KPMG auditors estimated DOT incurred a loss of approximately USD 103 million, being the difference between:

  • Approximately USD 127 million, being DOT’s net liabilities (excluding irrecoverable Tankoil balances) as at the date of liquidation on 18 November 2014; and
  • Approximately USD 24 million, being DOT’s net liabilities (excluding irrecoverable Tankoil balances) as at 31 December 2013 as stated in reflected in the audited accounts dated 31 March 2014.

In November 2018, Deloitte was the subject of investigations led by the Danish Business Authority regarding “significant deficiencies in the work performed” in the auditor’s statements of the O.W. Bunker group.

Stakeholders of the defunct bunkering firm O.W. Bunker A/S (currently in insolvency proceedings) launched a similar claim against Deloitte for damages over “breach(es) of their contractual obligation(s) and/or dut(ies) in their audit of the financial statements of Dynamic Oil Trading (Singapore) Pte Ltd (now in creditors’ voluntary liquidation and receivership), thereby resulting in the Plaintiffs suffering loss and damage.”

Related: O.W. Bunker USA and affiliate O.W. Bunker North America reaches USD 23.5 million settlement with creditors
Related: Dynamic Oil Trading liquidators publish notice of dividend to unsecured creditors
Related: Dynamic Oil Trading liquidators plan to declare interim dividend to unsecured creditors
Related: Singapore: O.W. Bunker A/S stakeholders take Deloitte & Touche LLP to court over alleged negligence
Related: Danish Business Authority finds fault with OW Bunker auditors
RelatedO.W. Bunker verdict: Prison sentence for Lars Moller
RelatedOW Bunker: High Court explains reviewed judgement of Lars Moller
RelatedOW Bunker: Public Prosecutor planning to review judgement
RelatedOW Bunker: Judgement to be appealed
RelatedOW Bunker verdict: Prison sentence for Lars Moller
RelatedOW Bunker: Verdict to be out on Wednesday
RelatedDynamic Oil trial: Lars Moller provides testimony
RelatedAll eyes on Dynamic Oil criminal trial at Denmark
RelatedDynamic Oil criminal trial set to begin in April

 

Photo credit: Manifold Times
Published: 25 April, 2023

Continue Reading

Emissions reporting

ZeroNorth and Veracity by DNV launch end-to-end emissions reporting, verification service

New offering combines ZeroNorth’s Vessel Reporting and Emissions Analytics platform with Veracity platform and DNV’s Emissions Connect verification services to deliver an end-to-end compliance solution.

Admin

Published

on

By

ZeroNorth and Veracity by DNV launch end-to-end emissions reporting, verification service

Maritime technology solutions provider ZeroNorth on Friday (16 May) said it has partnered with Veracity by DNV to launch a fully integrated emissions reporting and verification service for the maritime industry. 

Teekay is the first customer that will be implementing the service across its fleet, following successful testing and development.

As regulatory requirements tighten, ZeroNorth said maritime operators face growing demands for emissions transparency and reporting integrity. At the same time, poor data quality remains an industry-wide challenge. 

“The new offering combines ZeroNorth’s Vessel Reporting and Emissions Analytics platform with the Veracity platform and DNV’s Emissions Connect verification services to deliver an end-to-end compliance solution,” the company said in a statement. 

“The offering simplifies compliance by integrating automated data reporting with expert validation, reducing administrative burdens and improving data reliability.”

A key differentiator is the multi-layered data quality feedback loop, which ensures emissions data undergoes rigorous validation at multiple stages. Verification warnings from Veracity by DNV are automatically flagged to ZeroNorth’s data quality team, which then works directly with vessel crews to resolve discrepancies before final submission to authorities. 

This reduces compliance risks and enhances regulatory confidence while supporting continuous monitoring of EU MRV, IMO DCS, CII ratings, EU ETS and FuelEU Maritime compliance.

Teekay, a long-standing customer of ZeroNorth, participated in early testing of the solution and providing operational feedback. Since its successful implementation with Teekay, the service has been rolled out to two additional customers, and further deployments are underway.

Anders Schulze, Chief Operations Officer at ZeroNorth, said: “The maritime industry faces growing pressure to ensure emissions data is not just reported, but verified to the highest standards. Yet fragmented systems and manual processes continue to undermine data quality and increase compliance risk. 

“By combining ZeroNorth’s data and analytics capabilities with Veracity by DNV’s verification expertise, we are directly addressing this challenge. Our goal is to build trust in emissions data and reduce complexity for shipowners and charterers. We’re especially pleased that Teekay, a long-time partner, played a central role in shaping and validating the service.”

Mikkel Skou, Managing Director at Veracity by DNV, said: “At Veracity by DNV, the value of our ecosystem is built on strong partnerships, exemplified by our collaboration with ZeroNorth.

“By integrating trusted data and solutions like ZeroNorth’s Vessel Reporting and Emissions Analytics platform, we create a robust network that supports collaboration and drives sustainable growth in the maritime industry. 

“We look forward to continuing working towards our ambition to deliver trust and connectivity to the industry through this partnership with ZeroNorth.”

Mikkel Seidelin, Chief Commercial Officer at Teekay, said: “Partnering with ZeroNorth improves our ability to navigate complexities seamlessly, leveraging on data and technology to optimise our performance and reduce inefficiencies.

“When we are equipped with verified, end-to-end data, it empowers us as owners towards seamless decision-making, resulting in real sustainable and operational target-achievements.”

 

Photo credit: ZeroNorth
Published: 16 May, 2025

Continue Reading

LNG Bunkering

Singapore: FueLNG achieves 400th LNG bunkering operation milestone

Bunker tanker “FueLNG Bellina” successfully delivered LNG bunker fuel to “BYD Shenzhen”, the world’s largest LNG-fuelled car carrier at Singapore anchorage during its maiden voyage.

Admin

Published

on

By

Singapore: FueLNG achieves 400th LNG bunkering operation milestone

Singapore’s licensed LNG bunker supplier FueLNG on Thursday (15 May) announced the successful completion of its 400th LNG ship-to-ship (STS) bunkering operation in the republic.

FueLNG, a joint venture between Keppel Offshore & Marine and Shell Eastern Petroleum Pte Ltd, marked the milestone with bunker tanker FueLNG Bellina successfully refuelling BYD Shenzhen, the world’s largest LNG-fuelled car carrier, at Singapore anchorage during its maiden voyage.

“With a capacity of 9,200 vehicles and equipped with dual-fuel LNG propulsion, the BYD SHENZHEN represents the next generation of low-emission maritime transport,” it said in a social media post. 

Shell said it supported BYD Shenzhen on its maiden voyage as the supplier of the LNG bunker fuel. 

“Like all LNG dual fuel vessels, BYD Shenzhen is on the pathway to net zero emissions. She can take bio-LNG, and in the future e-LNG, in her fuel mix for further emission reduction and regulatory compliance,” it said in a separate social media post. 

 

Photo credit: Shell
Published: 16 May, 2025

Continue Reading

Biofuel

Hong Kong: CPN hits new record for China’s largest B24 biofuel bunkering operation

Chimbusco Pan Nation delivered 6,300 mt of B24-VLSFO in Hong Kong to boxship “XIN LOS ANGELES” on 15 May, exceeding its previous record of 5,500 mt delivered in February 2025.

Admin

Published

on

By

Hong Kong: CPN hits new record for China's largest B24 biofuel bunkering operation

Hong Kong-based bunker supplier Chimbusco Pan Nation Petro-Chemical (CPN) on Friday (16 May) said it has set a record for China’s largest B24 marine biofuel bunkering operation.

CPN said it delivered 6,300 metric tonnes (mt) of B24-VLSFO in Hong Kong to container ship XIN LOS ANGELES on 15 May. 

The supply exceeded CPN’s previous record of 5,500 mt delivered to the same ship in February 2025.

“This collaboration reinforces CPN’s ability to execute large-scale marine biofuel bunkering with precision and reliability,” the company said in a social media post.

“By consistently supplying large volumes of B24 marine biofuel, CPN supports reduced carbon emissions and sustainable shipping practices globally.”

Related: CPN achieves largest B24 bio bunker fuel delivery in Hong Kong and China

 

Photo credit: Chimbusco Pan Nation Petro-Chemical
Published: 16 May, 2025

Continue Reading
Advertisement

OUR INDUSTRY PARTNERS



Trending