Wilmar China unit found guilty of contractual fraud

Guangzhou Yihai was fined $183,912.50 (RMB1m) and intends to appeal.

Wilmar International Limited’s 89.99%-owned subsidiary, Yihai Kerry Arawana Holdings Co., Ltd (YKA), has reported that its PRC subsidiary, Yihai (Guangzhou) Oils & Grains Industries Co., Ltd, was found guilty of contractual fraud by the Intermediate People’s Court of Huaibei City.

Guangzhou Yihai was fined $183,912.50 (RMB1m) and, together with Yunnan Huijia Import and Export Co., Ltd, ordered to cover $345.7m (RMB1.88b) in losses to state-owned Anhui Huawen International Trade Co., Ltd.

Meanwhile, a former general manager of Guangzhou Yihai was sentenced to 19 years in prison and fined $514,914 (RMB2.8m), with illicit gains confiscated.

Guangzhou Yihai disputes the judgment, asserting that Yunnan Huijia fabricated transactions and shifted responsibility.

The company intends to appeal, and the fine is not payable pending the outcome. The ultimate financial impact on Wilmar Group remains uncertain.

RM1 = $0.18

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