Radiant World and Sapphire Minmetals have filed a lawsuit against Glencore Plc in Singapore, seeking $2 billion in damages. Rakesh Sethi, chairman of Sapphire Minmetals, confirmed the filing, stating the two companies are joining forces for the claim. This legal action comes as the relationship between the companies, once very close with Glencore effectively banking Radiant World, has deteriorated.
Simultaneously, Glencore has publicly accused Radiant World and its associated companies of fraud. Glencore claims it has "confirmed evidence" that Radiant World sent "falsified invoices and contracts as well as fabricated emails, which they fraudulently claimed to have received from Glencore personnel, to a number of financial institutions." Glencore announced it has terminated all business dealings and exited all obligations with Radiant World and Sapphire Minmetals.
This dispute follows earlier reports from Bloomberg in July that several major commodity traders had begun cutting ties with Radiant World due to concerns over falsified documents provided to banks. Glencore itself had previously taken a $480 million provision on its exposure to Radiant World. The company is now conducting an internal review of its past business activities with Radiant World, Sapphire Minmetals, and their affiliates, stating that these issues are being taken seriously. Glencore has dismissed Radiant World's claims as "meritless" and vowed to contest them vigorously, asserting that it has incurred losses and been exposed to risks by Radiant World companies.
