CWT Commodities considers legal action amid Qingdao port probe
Singapore-headquartered CWT Commodities weighs action as more suits filed in metals fraud
CWT Commodities is considering legal action as Qingdao port confirmed two more civil lawsuits have been launched by firms embroiled in a suspected metals financing fraud that could total almost US$1 billion.
CWT is a warehousing company whose headquarters is in Singapore.
Lee Wei Teo, a representative of CWT Commodities’ legal department in the city state, said the company could not provide information on the matter.
Qingdao Port International, the Hong Kong-listed vehicle of the third-largest port in China, confirmed on Friday night that it is being sued by Pacorini Logistics, the metals warehousing unit of Glencore, for US$58.4 million. ABN Amro is taking legal action against Citic Australia Commodity Trading, a subsidiary of Citic Resources, for one million yuan (HK$1.25 million).
Industry analysts expect more lawsuits from companies seeking to secure their rights over the cargo of metals detained by the Chinese authorities at the port amid a criminal investigation on commodity financing.
Companies that have taken action over the commodity financing scandal in Qingdao include HSBC, Citic Resources, Standard Chartered, Standard Bank, Citigroup, and Shanxi Coal International Energy Group. The potential losses from publicly known claims could exceed US$900 million.