South Korea’s National Pension Service (NPS) has said it may file a damages suit against Daewoo Shipbuilding & Marine Engineering (DSME) due to the yard’s ongoing $4bn-plus accounting fraud scandal.
The NPS saw its shareholding in DSME take an $86m hit between 2013 and 2015, the years where the accounting fraud manifested.
“We’re deliberating filing a damages suit against Daewoo because we suspect accounting fraud,” an official from the NPS told local media. “We must conduct a thorough review on how much financial damage it caused to the NPS, and the extent of any suit that we might file.”
NPS may seek compensation from DSME’s accountants, Deloitte Anjin, who have come under fire for failing to spot the huge fraud committed in recent years.
Separately, prosecutors in Seoul today said they have indicted a former DSME CFO over his alleged involvement in the fraud. Two former CEOs have already been indicted.