Asia Pacific Breweries case concluded?

The case of Asia Pacific Breweries (well known for its Tiger Beer) and the massive fraud of their Finance Manager Chia Teck Leng may have come to a close.

Chia had defrauded 5 banks with Singapore branches of over $100 million by using the name of his employer to obtain loans. His employer was unaware of his activities. He was sentenced to a record 42 years jail. Of the 5 victim banks, 4 sued but 2 dropped out halfway. Finally, only Skandinaviska Enskilda Banken from Sweden and Germany's Bayerische Hypo-und Vereinsbank (HVB) continued with their claims.

Their arguments in court were based on the actual authority or the apparent authority of Chia to obtain finance for his employer, and negligence on the part of his employer. In a lengthy judgment, High Court judge Belinda Ang rejected all arguments of the banks and dismissed their claim. The court found that the banks had not followed proper procedures which would have led to the fraud being detected at an earlier date. As expected, the banks were ordered to pay the costs of the legal proceedings.

At a later date, the judge's decision will be summarised on this blog. In the meantime, the story may not have ended as an appeal appears to have been filed. It is rare for a judge to issue a written judgment if there is no appeal in a particular case.