Wilmar Unit Denies Involvement in Alleged China Palm Oil Fraud
- Yihai Kerry rejects prosecutor allegations on role in trades
- Company says transactions compliant with normal practice
Wilmar International Ltd. Arawana brand cooking oil at a supermarket in Shanghai.
Source: Bloomberg
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A Chinese subsidiary of Asian food giant Wilmar International Ltd. has denied allegations by a city prosecution agency that one of its units was partially accountable for a trade fraud that led to a 5.2 billion yuan ($725 million) loss for a state-owned company.
Wilmar’s Yihai Kerry Arawana Holdings Co. said in an exchange filing Friday that one of its units had been sued in the eastern province of Anhui over its alleged role in loss-making palm oil trades between a state-owned trader and a privately owned counterparty. The company, one of China’s top food processors, said it wasn’t involved in the fraud.