Wilmar unit denies involvement in alleged China palm oil fraud

Singapore's Wilmar International said on Tuesday its Chinese unit Yihai Kerry Arawana Holdings had denied involvement in an alleged China palm oil fraud.

The announcement followed a Jan. 12 stock exchange filing by Yihai Kerry denying allegations that one of its subsidiaries was partially accountable for a fraud that led to a loss of 5.2 billion yuan (US$725.13 million) for a state-owned enterprise.

Prosecution alleged that fake documents had been used to secure palm oil deliveries without paying full amount, according to the filing.

Yihai Kerry categorically denied any involvement and maintained that all transactions conducted by its unit adhered to contractual agreements. - Reuters