Page 13 - DMEA Week 02 2022

DMEA NEWS IN BRIEF DMEA

POLICY COMPANIES that some of the funds received by Prime
from the bank for the last two transactions
Gabonese workers strike UAE oil trader defrauded were dissipated “within a matter of days” to
an account belonging to Renish and another
over Covid measures Mauritius bank out of $21mn company, Petro Hub Energy FZE, which was
controlled by Renish’s CEO.
Gabon’s oil workers’ union (ONEP) and water A United Arab Emirates oil trading company SBM also alleged that Prime was complicit
and utilities workers’ union (SYNTEE+) committed fraud when it arranged for part of in the fraud and it was essentially operating as
began an indefinite general strike on Tuesday, a trade finance facility extended by Mauritian a single entity with Renish. But minutes before
11 January in protest against coronavirus bank SBM to be dissipated to related entities the October 2021 trial was scheduled to begin,
(COVID-19) restrictions and the cost of PCR and failed to repay more than US$21mn owed the bank and Prime reached a confidential
tests. to the lender, a court in Dubai has ruled. settlement so the judgement made no finding
The general strike will cover all companies Renish Petrochem FZE secured a lending against the company.
in oil and related activities, water and facility with SBM Bank in November 2017 Prime did not respond to a request for
electricity sectors throughout Gabon, the under which the bank advanced payments to comment from GTR. The company’s website
striking trade unions said. Renish’s supplier of crude oil, Prime Energy says it is based in Sharjah and was founded
ONEP first threatened strike action on 8 FZE. in 2012 “to satisfy the growing demand for
January over an increase in the cost of PCR Lanka, a Sri Lankan offshoot of the Indian oil and fuel products”. Ali Dideh Var Sadr,
tests, and measures that establish the health Oil Corporation which had agreed to buy a consultant, was delegated with running
pass as a condition for access to work or to the cargoes, would then pay the bank via an Prime’s operations at the time of the facility,
spaces. account belonging to Renish. according to the judgement.
“Our strike notice launched 10 days ago According to a December 29 judgement Renish and Mehta could not be reached
expired on Monday. We were not called to handed down in the Dubai International for comment. An archived version of Renish’s
open negotiations. We therefore launched Financial Centre Courts, the first three now-defunct website describes the company
the strike,” ONEP deputy secretary-general transactions were repaid to the bank without as a “manufacturer, exporter, importer,
Sylvain Mayabith told Gabon Actu. a hitch but three further advances totalling trader, supplier and distributor” of petroleum
Gabon, which re-joined OPEC in 2016 around US$30mn, between April and June products across multiple markets.
after a 20-year absence, is often subject to 2018, were not. The case has echoes of similar collapses
strikes by ONEP over employment terms. Renish’s managing director, Hitesh Mehta, and fraud allegations against small and
As OPEC’s second-smallest producer, who personally guaranteed the facility, medium-sized traders in recent years,
Gabon has seen a drop-off in exploration and stopped contact with the bank after the fourth particularly in Asia and the Middle East,
development drilling in the past five years. payment became overdue in June 2018 and which have left banks scrambling to recoup
Its oil output is about 200,000 barrels per day a business intelligence firm engaged by SBM losses.
(bpd), according to S&P Global Platts. found in July that the firm’s offices were locked The rash of insolvencies and fraudulent
BNE and “apparently abandoned”. trading activity, many of which were exposed
Evidence presented by the bank shows when markets were battered by the outbreak

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