13th Feb 2017 14:25
LONDON (Alliance News) - Some global banks briefly froze credit lines for Singapore metal traders last month after a unit of commodities giant Glencore PLC uncovered fake warehousing receipts, reviving the spectre of a USD3.00 billion scandal three years ago, Reuters reported on Monday.
Though the impact has proved limited so far, the "forged" receipts for nickel stocks that Glencore's Access World unit said it found still set alarm bells ringing - even though regulation and scrutiny have been tightened across the business since the 2014 Qingdao port scandal in China, Reuters reported.
Two people who have metal storage dealings with Access World said the company told them the receipts were from a third party, not issued internally. At Qingdao, a firm allegedly duplicated notes pledging metal as collateral for multiple bank loans.
"We checked with (Access World) and all our stock was in good order," said one of the people, an official at a Singapore trading house. But the firm did have its credit lines temporarily frozen by several banks while they investigated, the person said, speaking on condition of anonymity, Reuters said.
Metals traders told Reuters that a raft of international banks involved in providing finance to the sector, including Australia's ANZ, France's Natixis and Rabobank of the Netherlands, temporarily froze some credit lines before for the most part resuming business.
http://uk.reuters.com/article/uk-metals-warehouse-glencore-idUKKBN15S0TB
By Joshua Warner; [email protected]; @JoshAlliance
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