USD 1.42 Bn Order Scrapped at DSME

DSME South Korean shipbuilding major Daewoo Shipbuilding and Marine Engineering (DSME) said that an order worth KRW 1.58 trillion (USD 1.42 billion) has been cancelled. According to the companys stock exchange filing, the order was for one fixed oil production platform, placed in 2013 by a European shipowner. DSME added that the termination is not expected to have an effect of its balance sheet as no cost has been incurred. The announcement comes amid South Koreas investigation into the ailing shipbuilders alleged accounting fraud worth KRW 5.4 trillion (USD 4.6 billion). The countrys prosecutors revealed the fraud after they raided the shipbuilder’s offices on June 7. Earlier this week, South Korea’s prosecutors formally accused the former Chief Executive Officer of Daewoo Shipbuilding & Marine Engineering (DSME), Ko Jae-ho, of taking part in the fraud. Namely, Ko Jae-ho was charged with fraud, breach of trust, and violating the Financial Investment Services and Capital Markets Act and the Act on External Audit of Stock Companies. World Maritime News Staff