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Tanker chief engineer found guilty of bunker scam

Tanker chief engineer found guilty of bunker scam
The chief engineer of a crude oil tanker has been found guilty of shortchanging his ship of 200 metric tonnes of bunker fuel, according to a joint statement by Singapore's Corrupt Practices Investigation Bureau (CPIB) and Maritime and Port Authority of Singapore (MPA).

The accused, Pittis Stavros of Greek national, was the chief engineer of oil tanker Sakura Princess, which was chartered by V8 Pool Inc to deliver a load of cargo.

Stavros saw an opportunity for a lucrative business when arrangements were made for 500 metric tonnes of bunker fuel grade 380 cst to be supplied to Sakura Princess, according to the CPIB and MPA joint statement.

A deal was subsequently struck with the bunker tanker's bunker clerk and marine surveyor to sell back 200 metric tonnes of bunkers to the fuel supplier, thereby supplying only 300 metric tonnes of 380 cst oil to the receiving tanker.

The independent marine surveyor had under-declared the amount of fuel remaining in the receiving vessel and the bunker clerk had prepared false documentation, the joint statement said.

This malpractice is commonly known as a 'buy-back' arrangement in the bunkering industry, where fuel is being 'sold back' to the company supplying it.

“The CPIB mounted a joint operation with the MPA on 10 January 2013, when arrangements were made for this illicit transaction to take place. Raids were conducted on the vessel and the suspected parties were arrested and brought back to the CPIB for investigation,” the joint statement said.

Stavros was found guilty by Singapore's court of law on 10 April this year and he will be sentenced on 17 April.

Such unlawful bunkering practices typically require a collusion between corrupted personnel from the receiving vessel and the bunker tanker, and the malpractices are not limited to Singapore.

Shortchanging of bunker fuel to receiving vessels is an unlawful practice that MPA is serious about clamping down, leading to the mandatory use of mass flow meters in Singapore port by 1 January 2017.

Apart from cutting down on the time needed on bunker delivery and raising overall efficiency during the bunkering process, the use of mass flow meters is expected to prevent such 'buy-back' arrangements due to the digital accuracy of the meters.