subsidiary, Mitsui Oil Asia Singapore (MOAS), have been charged with “deceptively concealing” losses pertaining to the physical and futures trading losses of naphtha contracts in Singapore in late 2006.
Noriyuki Yamazaki, MOAS’s former head of naphtha trading, his immediate boss, Wada Takayoshi, and the company’s executive vice-president Masatsugu Takahashi were charged in Singapore for their role in allegedly concealing US$81 million of trading losses.
The cover-up was discovered in November 2006 when parent Mitsui & Co launched an investigation following the discovery of “significant” losses from naphtha trading.
Mitsui said it and MOAS have been fully cooperating with the Singapore Police Force since MOAS filed a police report.
Mitsui said it takes the prosecution of its employees by the Singapore authorities with the utmost graveness, and will endeavour to enhance the effectiveness of internal controls over its consolidated group as a whole. It reported the matter to the Singapore police in February last year. Mr Yamazaki, who arrested shortly after the police report, left the company to join broker Ginga Petroleum in April.
In March 2008, MOAS’s shareholders had resolved to dissolve the company at its extraordinary shareholders’ meeting.