JURONG Shipyard on Monday started legal action against Societe
Generale to recover US$198.9million (S$285million) which relates to
unauthorised foreign exchange transactions.
Its Singapore High Court action is for US$83.5million paid to
the French bank before unauthorised foreign exchange transactions
were uncovered in October 2007.
Added to this is US$115.4 million paid to Societe Generale as
part of preconditions for closing the unauthorised transactions in
November 2007.
This second payment was made on the premise that it would be
refunded should the dispute over the unauthorised forex trades be
resolved in Jurong Shipyard's favour, said Sembcorp Marine.
The issue dates back to October 2007, when Sembcorp Marine
revealed that Jurong Shipyard had suffered massive forex losses of
US$303million.
The losses were blamed on former finance chief Wee Sing Guan,
who was sacked by Jurong Shipyard which also filed a complaint
against him with Singapore's Commercial Affairs Department.
'Jurong Shipyard remains of the view that the unauthorised
transactions were not valid and binding on Jurong Shipyard, and is
pursuing its right to claim for a refund of the monies from Societe
Generale,' Sembcorp Marine said.
The red ink was reduced to US$258.7million last year, after
Jurong Shipyard reached agreement with nine of the 11 banks
involved to close out the transactions.
--ST