SINGAPORE: The founder of a failed Singapore oil trading company was sentenced Monday to nearly 18 years in jail for cheating banking giant HSBC out of millions of dollars in one of the country’s most serious cases of fraud.
Lim Oon Kuin, 82, better known as O.K. Lim, was convicted in May in a case that dented the city-state’s reputation as a top Asian oil trading hub.
His firm, Hin Leong Trading, was among Asia’s biggest oil trading companies before its sudden and dramatic collapse in 2020.
Sentencing him to 17 and a half years in jail, State Courts judge Toh Han Li said he agreed with the prosecution that the offenses had the potential to undermine confidence in Singapore’s oil trading industry.
The amount involved “stood at the top-tier of cheating cases” in the city-state, a global financial hub, he said.
The judge shaved off a year due to Lim’s age but did not give any sentencing discount on account of his health, saying the Singapore Prison Service has adequate medical facilities.
Lim, however, remained free on bail after his lawyers said they would file an appeal before the High Court.
State prosecutors had sought a 20-year jail term, saying “this is one of the most serious cases of trade financing fraud that has ever been prosecuted in Singapore.”
The defense had argued for seven years imprisonment, playing down the harm caused by Lim’s offenses and citing his age and poor health.
The businessman faced a total of 130 criminal charges involving hundreds of millions of dollars, but prosecutors tried and convicted him on just three – two of cheating HSBC, and a third of encouraging a Hin Leong executive to forge documents.
Prosecutors said he tricked HSBC into disbursing nearly $112 million by telling the bank that his firm had entered into oil sales contracts with two companies.
The transactions were, in fact, “complete fabrications, concocted on the accused’s directions,” prosecutors said, adding that his actions “tarnished Singapore’s hard-earned reputation as Asia’s leading oil trading hub.”
Lim built Hin Leong from a single delivery truck shortly before Singapore became independent in 1965.
It grew into a major supplier of fuel used by ships, and its rise in some ways mirrored Singapore’s growth from a gritty port to an affluent financial hub.
The firm played a key role in helping the city-state become the world’s top ship refueling port, observers say, and it expanded into ship chartering and management with a subsidiary that has a fleet of more than 150 vessels.
But it came crashing down in 2020 when the coronavirus pandemic plunged oil markets into unprecedented turmoil, exposing Hin Leong’s financial troubles, and Lim sought court protection from creditors.
In a bombshell affidavit seen by AFP in 2020, Lim revealed the oil trader had “in truth... not been making profits in the last few years” – despite having officially reported a healthy balance sheet in 2019.
He admitted that the firm he founded after emigrating from China had hidden $800 million in losses over the years, while it also owed almost $4 billion to banks.
Lim took responsibility for ordering the company not to report the losses and confessed it had sold off inventories that were supposed to backstop loans.
Disgraced Singapore oil tycoon sentenced to nearly 18 years for fraud
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Disgraced Singapore oil tycoon sentenced to nearly 18 years for fraud
- Lim Oon Kuin was convicted in May in a case that dented the city-state’s reputation as a top Asian oil trading hub
- His firm was among Asia’s biggest oil trading companies before its sudden and dramatic collapse in 2020
Families mourn those killed in a Congo mine landslide as some survivors prepare to return
GOMA, Congo: After a landslide last week killed at least 200 people in eastern Congo at a rebel-controlled coltan mine, families of the deceased and survivors are mourning their lost loved ones, and some survivors prepared to head back to the reopened mines.
On Wednesday, following heavy rains in eastern Congo, a network of hand-dug tunnels at the Rubaya mining complex collapsed, killing at least 200 artisanal miners and trapping an unknown number who remain missing. The mine, located around 25 miles (40 kilometers) to the west of the regional capital of Goma, has been under the control of Rwandan-backed M23 rebels since early 2024 and employs thousands of miners who work largely by hand.
Family members grieve
In the Mugunga neighborhood in Goma, the family of Bosco Nguvumali Kalabosh, 39, mourned his death Monday.
Since last Thursday, relatives, neighbors and loved ones have been gathering at the family home, sitting around a photograph of him placed up against a wall.
“He was supposed to return to Goma on Thursday,” said his older brother, Thimothée Kalabosh Nzanga.
Kalabosh had been a miner for more than 10 years. He owned his own mines on the site and came from a family where artisanal mining — mining for minerals using basic hand tools — had been passed down from generation to generation. He leaves behind a widow and four children, the eldest of whom is 5 years old.
Survivors head back to Rubaya
For survivors trickling back into town, the pressure to return to the mines is clear — despite the constant danger.
Tumaini Munguiko, a survivor of the collapse, came to offer his condolences to Kalabosh’s family. “Seeing our peers die is very painful. But despite the pain, we are forced to return to the mines to survive,” he said.
Munguiko calmly explained that he had already experienced several similar disasters. “It has almost become normal. We accept it because it is our means of survival. I was saved this time, but I lost five friends and my older brother.”
According to him, landslides are common in Rubaya, especially during the rainy season. “When it rains, the clay soils become unstable. Some take shelter, others perish, others survive, and others watch from afar,” he said.
Miners dig long tunnels, often parallel to one another, with limited support and no safe evacuation route in case of a collapse.
A former miner at the site told The Associated Press that there have been repeated landslides because the tunnels are dug by hand, poorly constructed and not maintained.
“People dig everywhere, without control or safety measures. In a single pit, there can be as many as 500 miners, and because the tunnels run parallel, one collapse can affect many pits at once,” former miner Clovis Mafare said.
“The diggers don’t have insurance,” said Mafare. Of potential compensation for families, he said: “It’s a whole legal process, and it’s very long. They might receive some money for the funerals, but that small amount isn’t compensation.”
Kalabosh’s family has not received compensation for their loss.
However, both Munguiko and Nzanga say they will return to the mines soon despite the risks.
“I have no choice. Our whole life is there,” said Munguiko.
Rare earth minerals
The Rubaya mines have been at the center of the recent fighting in eastern Congo, changing hands between the Congolese government and rebel groups. For over a year now, the site has been controlled by the M23 rebels.
The mines produce coltan — short for columbite-tantalite — an ore from which the metals tantalum and niobium are extracted. Both are considered critical raw materials by the United States, the European Union, China and Japan. Tantalum is used in mobile phones, computers and automotive electronics, as well as in aircraft engines, missile components and GPS systems. Niobium is used in pipelines, rockets and jet engines.
The mines at Rubaya are massive and attract people from across the region. Artisanal miners and workers have been flocking there for years, drawn to the site to earn a steady income in a region plagued by poverty and chronic insecurity. A disaster like this affects people across eastern Congo and the grief has spread to regional hubs like Goma.
For the last two weeks, Rubaya has been virtually cut off from the world. The mining town has no mobile network or Internet connection. Poor infrastructure, coupled with persistent conflict, means cellular service and electricity are unreliable. To communicate with the outside world, residents must pay around 5,000 Congolese francs — just over $2 — for 30 minutes of connection via a private Starlink system.
Congo’s government, in a statement on X, expressed solidarity with the victims’ families and accused the rebels of illegally and unsafely exploiting the region’s natural resources while blaming Rwanda. An M23 spokesperson accused the government of politicizing the tragedy and listed other collapses at government-controlled mines.
