TOKYO, Nov 6 ― Japanese trading house Mitsubishi Corp said today it will shut down a Singapore unit that trades crude oil and petroleum products after alleging earlier that a trader racked up US$320 million (RM1.32 billion) of losses in unauthorised trading.
Mitsubishi said the unit, Petro-Diamond Singapore, “has confirmed after closing the positions concerned, it will realise a loss of approximately ¥34.2 billion (RM1.29 billion) before taxes, which could put the subsidiaries final debt as high as ¥30.8 billion.”
Mitsubishi Corp, Japan's biggest trading house by sales, said in September the trader at Petro-Diamond had lost US$320 million through unauthorised transactions in crude oil derivatives and that the matter had been reported to the police.
The trader later denied wrongdoing in a statement issued through a lawyer. ― Reuters
