E-Malt.com News article: 3332

Singapore: Asia Pacific Breweries Ltd. (APB), the brewer of Tiger Beer, said on Friday, September 24 the number of foreign banks suing its Singapore unit over more than $63 million in loans had risen to three, under the Reuters report.

HVB, Germany's second-biggest bank, this week filed a suit against APB to recover $30 million from a loan. Sweden's Skandinaviska Enskilda Banken AB's (SEB) and Japan's Mizuho Corporate Bank Ltd. also filed suit for a total $33 million plus interest and costs, APB said in a statement. Lawyers for the two banks had said they would launch their suit this week.

APB is at the centre of a scandal involving a former finance manager who was convicted of fraud in April.

Chia Teck Leng was sentenced to 42 years in prison for falsely obtaining around $70 million in loans in the name of Asia Pacific Breweries (Singapore) Pte. Ltd. (APBS) from the Swedish, Japanese and German banks. Skandinaviska Enskilda Banken, Sweden's second-biggest bank, lost $25 million, while Mizuho Corporate Bank lost $8 million in loans to the APB unit, a lawyer at Rajah and Tann, a Singapore law firm acting for both SEB and Mizuho said.

APB has rejected all three claims, blaming lapses in the banks' internal controls and accusing them of failing to detect and prevent Chia's acts of fraud. "APBS is confident of its position and will vigorously defend the claims in Court," said APB, which is 42.5 percent-owned by Dutch brewer Heineken NV. and 37.9 percent-owned by Singapore conglomerate Fraser & Neave Ltd.

APB operates breweries from New Zealand and Papua New Guinea to China, selling Heineken, Anchor, Baron's and ABC Stout brands. APB shares were unchanged at S$7.45 on Friday morning in very thin volume.


25 September, 2004