PRESS RELEASE BY CPIB AND MPA Fuel Deal Sunk at Sea
Bunkering is the process of supplying fuel to ships when they call at the ports. Singapore is the largest and most important bunkering port in the world. The country’s strategic port saw bunker sales volume hit more than 42 million tonnes in 2013. This industry presents many opportunities and temptations leading to lucrative deals but this particular deal is doomed to sink...
2The accused, Pittis Stavros (“Pittis”), was a Chief Engineer of the MV Sakura Princess, which was chartered by V8 Pool Inc to deliver a load of cargo. He saw an opportunity for a lucrative business when arrangements were made for 500 tonnes Marine Fuel Oil 380 to be supplied to the MV Sakura Princess. A deal was struck with the bunker clerk and marine surveyor to sell back 200 tonnes of the fuel oil to the fuel supplier, thereby supplying only 300 tonnes of the fuel oil to the vessel. This is known as a “buy-back” arrangement in the bunkering industry, where fuel is being “sold” back to the company supplying it.
3The Corrupt Practices Investigation Bureau (CPIB) mounted a joint operation with the Maritime and Port Authority of Singapore (MPA) on 10 January 2013, when arrangements were made for this illicit transaction to take place. The deal was struck as the parties involved colluded to ensure that only 300 tonnes of fuel oil was supplied to the MV Sakura Princess instead of 500 tonnes ordered by V8 Pool. The independent marine surveyor had under-declared the amount of fuel remaining in the vessel and the bunker clerk had prepared false documentation. Raids were conducted on the vessel and the suspected parties were arrested and brought back to the CPIB for investigation.
4For his scheme, the accused was charged on 23 May 2013 with one count of Criminal Breach of Trust as a Servant, under Section 408 of the Penal Code Chapter 224.
5The accused claimed trial but the court of law found him guilty on 10 April 2014. He will be sentenced at Court 12 on 17 April 2014 at 2.15 pm.
6Singapore has always adopted a zero tolerance approach towards corruption and criminal activities. The CPIB and MPA take a serious view of any corrupt practices, and will not hesitate to take action against any parties involved.
Jill Tan Senior Executive (Corporate Relations) Corrupt Practices Investigation Bureau Tel: 9818 1569 Email: jill_tan [at] cpib.gov.sg
Serene Liu Manager (Corporate Communications) Maritime and Port Authority of Singapore Tel: 6375 1789 Email: serene_liu [at] mpa.gov.sg