Wilmar affirms zero tolerance for corruption after Chinese unit denies involvement in oil fraud

Yihai Kerry’s subsidiary has denied involvement in fraud causing $976.8m state enterprise loss.

SGX-listed Wilmar International has reiterated that it has “zero tolerance for corrupt practices and does not condone any corrupt acts by any of its employees or office holders.”

The company issued the statement after its listed Chinese subsidiary, Yihai Kerry Arawana Holdings, denied the involvement of its unit, Yihai Kerry (Guangzhou) Oils & Grains Industries, in an oil palm fraud which resulted in a $976.8m loss (5.2b yuan) for a state-owned enterprise.

According to a Reuters report, the prosecution accused Yihai Kerry (Guangzhou) Oils & Grains Industries of “using fake documents to secure palm oil deliveries without paying the full amount.”

Wilmar International said Yihai Kerry Arawana Holdings “disagrees with the facts and changes in the indictment and will actively defend its right to protect the legal interest of the company and all shareholders.”