Glencore has filed a S$2.5 billion fraud claim in Singapore against iron ore trader Radiant World, accusing the group of sending falsified invoices, contracts and fabricated emails to lenders in a scandal gripping the global commodities industry.
The suit, lodged on September 15 by 11 Radiant World-linked entities across Singapore, Hong Kong, the United Arab Emirates and Switzerland, targets three Glencore units, with a first case conference set for October 21. Glencore said it has ended all business with Radiant World and associated companies including Sapphire Minmetals, and for the first time directly alleged fraud, saying it had 'confirmed evidence' that they sent falsified invoices, contracts and fabricated emails to financial institutions while claiming these materials came from Glencore staff. Radiant World has said the claims are meritless and that it will contest them vigorously.
Glencore was for years Radiant World's principal backer, helping it secure financing and acquiring warrants giving it the option of a minority stake. A letter from Radiant World's lawyers cited a November 2024 message from Peter Hill, Glencore's head of steelmaking raw materials, saying Glencore had 'basically bankrolled your entire existence for the last few years.' The Swiss commodities giant has taken a $480 million provision on its Radiant World exposure, among the largest trading losses in its history, and says it is reviewing its historic dealings with the group.
The saga began in July when reports surfaced of concerns that Radiant World had been using falsified documents to raise money from banks. A Singapore court subsequently appointed KPMG restructuring executives to take charge of Radiant World after an application by creditor Mizuho Bank, stripping founder Pinkesh Nahar of control over the group's key operating entity.
Billionaire Ivan Glasenberg, who ran Glencore from 2002 until 2021 and remains its largest individual shareholder with about 1.219 billion shares, a roughly 10 per cent stake, is affected proportionally by the trading losses but has not been accused of any wrongdoing. The case is being watched across commodity markets and banking circles in Singapore, where it has raised fresh questions about trade finance fraud controls and the due diligence banks perform on receivables-backed lending. The dispute has also exposed the uncomfortable mechanics of modern commodity finance. Radiant World's model depended on banks advancing funds against receivables, paperwork that is only as honest as the trader presenting it. Glencore's allegation that invoices, contracts and even emails purportedly from its own staff were fabricated suggests a level of document fraud that goes well beyond aggressive accounting. For Singapore, which has positioned itself as Asia's premier commodity trading hub, the saga is an unwelcome spotlight on the gaps in trade finance oversight. The Monetary Authority of Singapore has in recent years pushed banks to strengthen their controls after a string of fraud cases, but the Radiant World affair suggests determined fraudsters can still slip through. With a first case conference set for October 21 and KPMG now running Radiant World's key operating entity at Mizuho Bank's behest, the coming months will determine whether creditors recover anything meaningful or whether the alleged fraud has left the cupboard bare.