Mitsubishi Singapore Unit Suffers 320-M.-Dollar Loss
Tokyo, Sept. 20 (Jiji Press)--Major Japanese trading house Mitsubishi Corp. <8058> said Friday that a subsidiary in Singapore has logged a loss of some 320 million U.S. dollars in unauthorized trading of crude oil derivatives.
A former local employee in Singapore repeatedly engaged in unsanctioned derivatives transactions against company regulations, covering up the loss, Mitsubishi said.
According to Mitsubishi, the former employee with Chinese nationality worked for Petro-Diamond Singapore (Pte) Ltd.
The employee in question handled unauthorized crude oil futures, in addition to authorized hedge transactions aimed at reducing price fluctuation risks in crude oil trading, Mitsubishi said.
The Singaporean unit started investigating the transactions during his absence from work in August.
[Copyright The Jiji Press, Ltd.]