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Glencore accused Radiant World and associated companies of sending falsified invoices to lenders – just as a senior executive at the group of traders said they had filed a US$2 billion (S$2.55 billion) lawsuit against Glencore.
The claims mark the explosive end of a business relationship that for many years was extremely close.
Bloomberg News has reported previously that Glencore traded extensively with Radiant World, helping it secure financing and even acquiring warrants that gave it the option to take a minority stake in the smaller company.
On Sept 15, Glencore said that it had ended all business with Radiant World and associated companies including Sapphire Minmetals, and “exited all obligations”.
For the first time, it directly accused them of fraud, saying that it had “confirmed evidence” that Radiant World and associated companies had “sent falsified invoices and contracts as well as fabricated e-mails, which they fraudulently claimed to have received from Glencore personnel, to a number of financial institutions”.
Bloomberg News reported in July that several major commodity traders had moved to cut ties with Radiant World amid concerns it had provided falsified documents to banks.
The company at the time denied wrongdoing and said it conducts its business to the highest commercial and legal standards.
A spokesperson for Radiant World had no immediate comment on the Glencore statement.
Radiant World and Sapphire Minmetals have previously claimed that Glencore’s withdrawal went against its contractual commitments to them and has caused them enormous losses.
“We have filed in the Singapore court against Glencore for US$2 billion,” Rakesh Sethi, chairman of Sapphire Minmetals, told Bloomberg News by phone on Sept 15.
He said that Radiant World and Sapphire Minmetals were joining forces for the claim, declining to give further details.
It was not immediately possible to confirm that the lawsuit had been filed on the website of Singapore’s court syst...
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