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Lars Møller [pictured], chief executive officer (CEO) of Dynamic Oil Trading - the Singapore-based subsidiary alleged to have been involved in fraudulent activities that led to the collapse of its parent company, OW Bunker - publicly issued a warning to customers about the dangers of fraud just five months ago.

In a statement issued on June 9, the company encouraged ship owners to invest in long-term relationships with suppliers "to reduce their exposure to fuel quality and quantity risks, including bunker fraud".

"Ship owners can achieve even greater assurance over fuel quality and quantity by developing longer-term, partnership-based relationships with bunker suppliers that will work with them to reduce their exposure to disputes and fraudulent behaviour," the company said.

Møller is quoted as saying in the statement: "It is easy to see how ship owners could be tempted to cut corners when it comes to conducting due diligence on their bunkering purchasing decisions, perhaps by purchasing the fuel directly from the cheapest local supplier. However, they need to be aware of the risks that this poses, not just in terms of bunker fraud but also other risks that can threaten their operational activities and their reputation, as well as proving very expensive."

Møller added: "We only work with physical suppliers that we know to be reputable, trustworthy and committed to upholding high operational standards. In this way, our customers can have total confidence in the security of the fuel supply chain and that their exposure to fraud is minimised."

Last week, OW Bunker stated that it had been informed about a "fraud" committed by "senior employees" at Dynamic Oil Trading.

"The extent of the fraud is not yet clear, but preliminary findings suggest a potential loss of around USD 125 million," the Danish firm said in a statement on November 5.

OW Bunker said on Friday, November 7, that it had carried out an internal investigation and decided to report "two key employees" at Dynamic Oil Trading to the police and to relieve them of their duty immediately.