Mutmassliche Betrugsaffäre in der Rohstoffbranche: Auch Zurich und Allianz standen mit dem umstrittenen Händler Radiant World im Geschäft

Several Swiss insurance and trade companies have been implicated in a controversial case involving the Asian iron ore trading company Radiant World. The Zurich and Allianz insurers are suspected of providing coverage against payment defaults to the controversial firm. The affair surrounding Radiant World has expanded across Europe, with over a dozen financial institutions, including several in Switzerland, working with the contentious trading house.

Radiant World, founded by an Indian, Pinkesh Nahar, denies the allegations of using fake documents and numbers in transactions. The scope of the dispute involves insurance policies, including so-called ware credit insurance, which sought to cover Radiant World against payment defaults from trading partners. A Zurich policy allegedly had a coverage amount in the double-digit million-dollar range, while Allianz Trade's coverage was smaller.

The total coverage amount was reportedly smaller than that provided by Zurich. The affair has caused a stir in recent weeks, with serious accusations against Radiant World. The company, with offices in Singapore, Dubai, and Geneva, is suspected of using falsified documents and numbers in transactions. The company is accused of engaging in fraudulent practices, and it is demanding hundreds of millions of dollars in return from the Swiss commodity giant.

The case has drawn attention to the iron ore and steel trade, which is estimated to have a market value of several hundred billion dollars annually. As raw materials often need to be transported over long distances, producers and customers rely on guarantees issued by banks. Additionally, ware credit insurance policies are used to protect businesses against payment defaults from business partners.

Investigations into the case are being conducted by law enforcement agencies in Singapore and the United States, and several banks and trade houses have suspended their dealings with Radiant World. The Swiss conglomerate Glencore, based in the canton of Zug, has also made a provision in response to the situation.