This might not be a question that many want to ask but I think it’s one that needs to be asked. Why Singapore?
Barings Bank
China Aviation Oil
Petro Diamond Singapore
Hin Leong
We can all think of various phrases that tie them all together; trader, rogue, futures, losses, but there is another, Singapore. Why does it keep happening in Singapore? Why on such a grand scale?
Have auditors and regulators not upped their game? Clearly not!
This is from a recent newspaper article:
‘O.K. Lim, known formally as Lim Oon Kuin, has fallen on his sword, revealing he hid more than US$800 million (S$1.14 billion) in losses speculating in oil futures over the years. Worse still for the banks, Mr Lim said he had secretly sold some of the millions of barrels of oil inventories the company had pledged as collateral for its loans. The gap between the company’s assets and its liabilities stands at US$3.34 billion’
This was going on for years. This has not just happened.
He had secretly sold some of the millions of barrels of oil that were being used as collateral. Who was doing the audit? Mr Magoo?
I’ll repeat what I have said many times. Financial fraud is largely down to poor systems, poor controls and poor quality of people as well as, again, in this case, inappropriate or no division of responsibilities.
As to why it keeps happening in Singapore? One reason is that they are too proud to admit their failings and really ask the perpetrator how he got away with it for so long.
I know this for a fact. On my return to Singapore, I spent my first night effectively writing out my charges for the next day in the Commercial Affairs Department. During my time in Tanah Merah Prison, I received the following number of visits from regulators – none.
Until next time.