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Singapore: Germany's second-biggest bank, HVB Group, said on Tuesday, September 21 it had filed a claim against a unit of Singapore-based Asia Pacific Breweries Ltd (APB) to recover a US$30 million loan after one of the brewer's top executives was convicted of fraud, Reuters posted. The brewer of Singapore's popular Tiger brand beer is at the centre of a scandal involving the former finance manager of its unit, Asia Pacific Breweries (Singapore) Pte Ltd (APBS).

Chia Teck Leng was found guilty of fraud in April and sentenced to 42 years in prison for falsely obtaining loans in the name of APBS from Swedish, Japanese and German banks, including HVB, for around $70 million. "We are also pursuing Mr Chia but our primary case is going to be brought against Asia Pacific Breweries (Singapore) Pte Ltd," Peter Vassiliou, managing director of HVB, told Reuters. "The reason why we're obviously taking action against Asia Pacific Breweries is because we believe they are liable to repay our loan," Vassiliou said.

However, APB rejected the alleged claims by HVB. "It is HVB that has failed to detect and prevent acts of fraud by Chia. This will become apparent in the trial," it said in a statement.

APB is 42.5 percent-owned by Dutch brewer Heineken NV and 37.9 percent-owned by Singapore beverage and property conglomerate Fraser & Neave Ltd. It operates breweries from New Zealand, Papua New Guinea to China, and sells Heineken, Anchor, Baron's and ABC Stout brands.

Vassiliou said APBS is bound by the terms of the loan agreement because it was entered into by its most senior finance person. He also said APBS appeared to have been negligent in detecting that Chia had more than S$1 million in gambling debts at the time he was hired. HVB has been providing financial services to corporate customers in Singapore since 1995. HVB said the hearing on its claim will likely take place in the second half of next year.

APB shares ended up 0.67 percent at S$7.55 on Tuesday. Since the start of the year, APB has risen almost 20 percent, compared with a 13.5 percent gain in the key Straits Times Index.


22 September, 2004