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UPDATE: BP Singapore bunker bribery case

BP Regional Compliance Director took to the stand on Thursday to define the firm’s Code of Conduct.

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The trial of former BP Singapore Regional Marine Manager Clarence Chang continued at the State Courts of Singapore on Thursday.

Chang was facing 20 charges for allegedly accepting bribes totalling USD $3.95 million from Koh Seng Lee, the sole shareholder and executive director of Pacific Prime Trading (PPT) between the period of July 31, 2006 and July 26, 2010.

Theresa Zapiecki, BP’s Regional Compliance Director, Global Oil Eastern Hemisphere, Ethics & Compliance – Integrated Supply and Trading took to the stand to testify that Chang breached the oil major’s Code of Conduct and Global Trading Guidelines.

Deputy Public Prosecutor Jiang Ke-Yue told Zapiecki to elaborate on BP’s stand on the conduct of Chang who was suspected of setting up PPT with Koh and positioning the company to be the approved counterparty of BP Singapore.

“Under the BP code of conduct this is a conflict of interest and should be disclosed to the line manager, with legal and compliance getting involved for litigation,” she told the court.

“If Chang had gone to his line manager and disclosed the development prior to setting up the company [PPT], his line manager would have engaged compliance and legal as a minimum to define boundaries to mitigate conflict of interest; perhaps removing some job responsibilities around the counterparty or even not including the firm [PPT] as trading partner.”

Zapiecki further explained that if BP had found out about Chang’s alleged role in PPT after its creation, the oil major would have suspended him pending internal investigations.

An investigation report would have been presented at an internal disciplinary hearing; specially citing the Code of Conduct, a decision will have been made around misconduct with penalty being in the range from suspension or warning letter to termination.

According to Zapiecki, the Integrated Supply and Trading arm of BP which Chang was previously employed at is the only section in BP which is involved in physical trades; this exposes him to a different risk profile that requires him to follow additional compliance covering market manipulations, unfair trading activities, anti-competition rules, and collusion in trading behaviour and business communications. 

Chang voided compliance when he sent an internal message to Koh suggesting certain trading instructions.

The alleged instructions recommended PPT to trade 250,000 mt of bunkers per month, and “pass all terms with good pricing to BP first for spot trading at MOPS flat or 500 cSt plus two.”

Information gained from the instructions allowed BP to know how much PPT intends to purchase and could create a preferable trading environment to be used to inflate the price; it also discloses the margins and costs of BP, notes Zapiecki.

BP’s Code of Conduct was also violated when Chang recommended Koh to invest in his wife’s business, resulting in Koh investing SGD $500,000 for Mindchamps City Square between 2009 to 2010.

“If BP found out about this, he will have been put into suspension and investigations kicked off,” she says.

“A review of business communications, interviews to determine what Code of Conduct and Trading Guideline violations will have been made to check if he violated employment contract guidelines.

“If found, the penalty could range from warning letter to termination.”

The next trial at the State Courts of Singapore is scheduled for 24 July.

Related: BP Singapore bunker bribery case continues

Photo credit: Chensiyuan / CC BY-SA 4.0
Published: 12 July, 2018

 

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Vessel Arrest

Malaysia: MMEA detains oil tanker and cargo ship for illegally anchoring in Johor waters

Sierra Leone-registered cargo vessel was detained at 13.5 nautical miles east of Tanjung Penawar and a tanker registered from Comoros at south-east nine nautical miles, Tanjung Balau.

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Malaysia: MMEA detains oil tanker and cargo ship for illegally anchoring in Johor waters

The Johor Malaysian Maritime Enforcement Agency (MMEA) on Monday (22 April) said an oil tanker and a cargo ship were detained in two enforcement operations for anchoring illegally on 21 April.

Johor MMEA director First Admiral Nurul Hizam Zakaria said both ships were detained by MMEA operational teams at different locations in Johor waters.

A Sierra Leone-registered cargo vessel that was detained at 11am at 13.5 nautical miles east of Tanjung Penawar.

The second incident involved a tanker, registered in Comoros, at the south-east nine nautical miles, Tanjung Balau.

Malaysia: MMEA detains oil tanker and cargo ship for illegally anchoring in Johor waters

A tanker, registered in Comoros, was detained nine nautical miles southeast of Tanjung Balau

The detained cargo ship crew consisted of 15 Bangladeshi and Indonesian nationals, aged between 25 to 56, while the tanker was operated by 29 Indian, Pakistani and Iranian nationals aged between 21 to 54.

The captain and crew members were brought to the Tanjung Sedili Maritime Zone for further investigation under Section 491B(1)(L) of the Merchant Shipping Ordinance 1952.

Since 24 March 2021, a total of 297 merchant vessels were detained including 34 ships recorded for 2024 so far. 

 

Photo credit: Malaysian Maritime Enforcement Agency
Published: 24 April 2024

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Vessel Arrest

Singapore: Chemical tanker “Green Land” placed under Sheriff’s arrest, boxship also detained

Ships including “Xin Xin Shan” were added to list of vessels under Sheriff’s arrest in Singapore’s court system; arrests were made on behalf of law firms PDLegal LLC and DennisMathiew.

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Admiral Gulf / MarineTraffic

Saint Kitts and Nevis-flagged oil and chemical tanker Green Land was arrested in Singapore waters on Wednesday (17 April). 

The 46,136 DWT vessel was added to the list of vessels under Sheriff’s arrest in Singapore’s court system. 

According to the list, the vessel was arrested at 3.30pm and the arresting solicitor listed was law firm PDLegal LLC. The ship is currently held at Global OM (Offshore & Marine) – Grid 3816C. 

No further details regarding the reason behind the arrest were provided in the list. 

China-flagged container ship Xin Xin Shan was also placed under Sheriff’s arrest at 12.10pm on 20 April.  The ship is currently held at Eastern Anchorage and the arresting solicitor listed was law firm DennisMathiew. 

 

Photo credit: Admiral Gulf / MarineTraffic
Published: 23 April 2024

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Winding up

Singapore: Liquidator issues notice of dividend for Paliy Marine Engineering

Liquidator of Paliy Marine Engineering, which is undergoing voluntary liquidation, issued a notice on the first and final dividend.

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calculator steve pb from Pixabay

A notice of dividend for Paliy Marine Engineering Pte Ltd, which is undergoing voluntary liquidation, was published on the Government Gazette on Friday (19 April).

The following is the details of the notice:

Name of Company : Paliy Marine Engineering Pte. Ltd. (In Creditors’ Voluntary Liquidation) 

Unique Entity No. / Registration No. : 199608223D 

Address of Former Registered Office : 149 Rochor Road #03-28 Singapore 188426 

Amount per centum : 100 per centum of all admitted preferential claims 12.21 per centum of all admitted ordinary claims 

First and Final or otherwise : First and Final 

Name of Liquidator : Abuthahir Abdul Gafoor 

Address of Liquidator : c/o AAG Corporate Advisory Pte. Ltd. 144 Robinson Road #14-02 Robinson Square Singapore 068908

According to SGP Business website, the firm’s principal activity is building and repairing of ships, tankers and other ocean-going vessels. 

Related: Singapore: Paliy Marine Engineering liquidator issues intended dividend notice

 

Photo credit: steve pb from Pixabay
Published: 23 April 2024

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