Wilmar International has issued a statement on Jan 16, stressing that it has “zero tolerance” for corrupt practices. The group also does not condone any “corrupt acts” by any of its employees or office holders, it adds.

This is in reference to the media reports saying that the Chinese subsidiary of Wilmar has denied allegations by a city prosecution agency. Yihai Kerry Arawana announced, on Jan 12, that one of its units was sued for fraud where it was alleged to play a role in loss-making palm oil trades between a state-owned trader and a privately-owned counterparty. It said that it was not involved in the fraud.

“Yihai Kerry (Guangzhou) Oils & Grains Industries Co. Ltd disagrees with the facts and charges of the indictment, and will actively defend its rights to protect the legal interests of the company and all shareholders,” says Wilmar in its Jan 16 statement.

Shares in Wilmar closed at $3.44 on Jan 15.