The judge rejected these defences. He found that Lim continued to be the “big boss” of Hin Leong even after stepping down in April 2020, that he was “hands on” and that his approval was required for trades.
Judge Toh accepted evidence from Ong that she met with Lim every one to two weeks to update him on Hin Leong’s cash flow situation and take instructions, including on invoice discounting.
He rejected Lim’s claim that these meetings happened only once a month and lasted “five minutes”.
Instead, the judge pointed out that Lim accepted under cross-examination that he kept track of Hin Leong’s financial performance, and the objective was for it to be successful and making a profit.
Judge Toh also accepted evidence from prosecution witnesses Tan and Serene Seng, Lim’s personal assistant, on Lim’s involvement.
Tan consistently said that Lim had asked him to prepare the documents for China Aviation Oil in his statements to the police in 2022.
For the purported Unipec deal, Seng testified that on Mar 19, 2020, Lim told her Hin Leong was close to concluding the deal but wanted to close the accounts receivable first, and asked her to prepare the discounting application.
Seng also said that Lim had asked her to use a different signature to sign on a bill of lading used as a supporting document for the application.
Judge Toh also found that Lim’s responses to police questioning were inconsistent with the defence’s position that Lim had poor memory and was unable to concentrate when his statements were taken.
These statements included Lim’s answer when police asked if he had instructed staff to submit forged sales contracts to Hin Leong’s treasury department.
Lim replied that he had asked staff to prepare the contracts with China Aviation Oil and Unipec and submit them because Hin Leong was facing margin calls at the time.
“But I think the contracts (were) later cancelled due to some technical problems. We did not plan to cheat banks for financing,” Lim told police.
“It is common for oil companies to submit sales contracts to the banks for financing based on verbal confirmations. This is to get faster cash flow,” he added.
The prosecution relied on Lim’s answer to argue its case, whereas the defence sought to qualify Lim’s answer and challenge its reliability during the trial.
The judge found that Lim’s response was “nuanced and detailed”, and was satisfied it was captured accurately by the investigative officer.
Judge Toh also accepted evidence from HSBC staff that if they had known the two underlying transactions were bogus, they would not have approved the discounting applications.
Lim remains out on S$4 million bail. He, his son Evan Lim Chee Meng and daughter Lim Huey Ching are also defendants in a civil suit brought by liquidators seeking US$3.5 billion.
Hin Leong, founded in 1973, was one of Asia’s largest oil traders before its collapse.
The company filed for insolvency on Apr 17, 2020 – the same day Lim stepped down as managing director – and was wound up in March 2021.
The punishment for cheating or abetting forgery for the purpose of cheating is up to 10 years in jail and a fine.
