Wilmar International continues to deny allegations by the Indonesian National Police Food Task Force that it falsely sold lower grade rice as a higher-quality product.
The police on Aug 5 have named three suspects from Padi Indonesia Maju, a wholly-owned subsidiary of Wilmar International, in this case. They are the president director, factory head, and head of quality control.
The police have alleged that these individuals were involved in selling rice that does not meet packaging and quality standards.
“The Wilmar Group denies the allegations against it and will continue to assist with the investigations to clear its name,” the statement reads.
Wilmar first denied these allegations on July 24, after media reports revealed that Indonesian authorities are investigating rice producers over alleged quality fraud. 26 premium rice brands in Indonesia, including Wilmar, were named.
In May, Wilmar International and its subsidiaries placed a security deposit of IDR11.9 trillion ($930 million) for “corrupt actions” carried out in 2021 during a shortage of cooking oil in the Indonesian market.
This was in response to the Indonesian Attorney General’s Office (AGO) bringing charges against five of Wilmar’s subsidiaries, Multimas Nabati Asahan, Multi Nabati Sulawesi, Sinar Alam Permai, Wilmar Bioenergi Indonesia and Wilmar Nabati Indonesia, for the harming of state finances, unauthorised profits and harming the business sector. The alleged actions took place during July 2021 and December 2021.
Later, the AGO submitted an appeal against the decision of the Central Jakarta Court to the Indonesian Supreme Court, requesting that the subsidiaries demonstrate their belief in the Indonesian judicial system and their good faith and innocence by placing a security deposit.
Shares in Wilmar International closed 1 cent higher or 0.340% up at $2.95 on Aug 5.
