Latest news with #CCICSingapore
Online Citizen
19 hours ago
- Business
- Online Citizen
CCIC Singapore forced into liquidation and staff cuts after US sanctions freeze bank accounts
SINGAPORE: CCIC Singapore has announced its decision to cease operations and begin business liquidation, citing the unexpectedly severe impact of US sanctions imposed in May 2025. The move has resulted in the retrenchment of over 300 employees, with most staff based in Singapore. The firm, a wholly owned subsidiary of China Certification and Inspection Group (CCIC), issued a statement in Chinese acknowledging that it had been forced to shutter operations after its bank accounts were frozen. 'This led to a breakdown in cash flow, loss of clients and severe disruption to overall operations,' the company told state media CNA. 'The primary reason is that the impact of the sanctions has far exceeded expectations—banks have ceased providing services, and salaries and operational costs can no longer be paid,' it added. Company among 15 blacklisted by US over Iranian oil On 13 May 2025, the United States government blacklisted CCIC Singapore along with 14 other entities for allegedly helping obscure the origins of Iranian oil exports to China. The UUS sanctions stated that Sepehr Energy, a front company linked to the Iranian military, had 'consistently relied' on CCIC Singapore to inspect oil cargoes being delivered to China. According to the department, the company facilitated these transfers by providing inspection services and allegedly supplying falsified documents to disguise the origin of sanctioned Iranian oil. Employees notified of retrenchment with little notice Affected employees told CNA on condition of anonymity that they received their retrenchment notices on 30 May, with the termination effective the next day. Some workers reported that over 400 staff were employed across Singapore and Malaysia, with more than 300 based in Singapore alone. Retrenchment notices reportedly stated that benefits would be paid only after the liquidation process concluded, with an estimated completion date of 30 June 2026. Delayed salary payments and severance assurances CCIC Singapore confirmed it would pay salaries for May and partial severance payments within three days of its announcement. However, full retrenchment benefits would only be disbursed after the conclusion of the liquidation. Employees had earlier flagged delays in salary payments, attributing them to the company's frozen accounts and pending liquidation. The company described the decision to terminate Singapore operations as 'extremely difficult' but 'rational' under the circumstances. 'The decision was extremely challenging for the management team, but it is a rational choice that had to be made under the current circumstances,' CCIC Singapore said. US sanctions target broader network aiding Iran's oil trade Established in 1989, CCIC Singapore operated out of Singapore Science Park and counted global energy giants such as Shell, BP, Total, and Exxon Mobil among its clients, as well as leading Chinese petrochemical corporations. Its parent company, CCIC, is a Chinese state-owned enterprise founded in 1980 and supervised by the State-Owned Assets Supervision and Administration Commission of China's State Council. The US sanctions freeze all assets in the US financial system linked to the blacklisted companies and prohibit US firms from doing business with them. Entities at least 50 percent owned by sanctioned parties are also subject to these restrictions. The Treasury Department has accused CCIC Singapore of facilitating illicit trade that supports Iran's ballistic missile and drone programmes, as well as regional militant groups. In 2024, the firm allegedly oversaw the transfer of around 2 million barrels of Iranian oil and mislabelled shipments to disguise their true origin. When asked whether it would challenge the sanctions or respond to the US allegations, CCIC Singapore stated that it had always required its subsidiaries to comply with local and international laws. It said it would continue to manage related matters 'in accordance with the law' and maintain communication with 'all relevant parties'.
CNA
20 hours ago
- Business
- CNA
CCIC Singapore says it laid off staff as US sanctions over Iran oil shipments hit harder than expected
SINGAPORE: Cargo inspection company CCIC Singapore, which recently laid off hundreds of workers, said on Monday (Jun 9) that it had to do so as the impact of sanctions from the United States turned out to be far greater than expected, and that it has ceased operations in Singapore. The China-linked, Singapore-based firm was among 15 companies blacklisted by the US on May 13 for helping to conceal the origins of Iranian oil being shipped to China. "Due to the direct impact of US sanctions, the company's bank accounts have been frozen, resulting in an inability to repatriate revenue or cover expenses. This has led to a breakdown in cash flow, loss of clients and severe disruption to overall operations," the company told CNA in a statement in Chinese. "Against this backdrop, the company has been forced to initiate business liquidation and staff reductions. The primary reason is that the impact of the sanctions has far exceeded expectations - banks have ceased providing services, and salaries and operational costs can no longer be paid." CCIC Singapore said that it will disburse salaries for the month of May and part of the severance payments to each affected employee within three days. Retrenchment notices sent to employees had said that retrenchment benefits would only be fully paid after the liquidation process was complete, with an estimated date of Jun 30, 2026. Two employees earlier told CNA that CCIC Singapore has over 400 workers in Singapore and Malaysia, with the majority based in Singapore. Another employee said the firm has more than 300 workers in Singapore alone. The company added on Monday that it has made the "difficult" decision to terminate its Singapore operations after "thorough deliberation". "This decision was extremely challenging for the management team, but it is a rational choice that had to be made under the current circumstances," it said. CCIC Singapore is a wholly owned subsidiary of China Certification & Inspection Group (CCIC), a Chinese state-owned enterprise headquartered in Beijing. Asked for its comments on the US accusations and whether it intends to appeal, the company said it has "consistently required its subsidiaries to comply with the applicable laws and regulations of their host countries and other relevant jurisdictions". It added that it will continue to "manage all related matters in accordance with the law and maintain ongoing communication with all relevant parties". LAYOFFS AFTER US SANCTIONS Three affected employees had told CNA last Friday that staff across all departments of CCIC Singapore were notified of their retrenchments on May 30, with the terminations effective from the next day. The employees, who spoke on condition of anonymity, said the company had delayed the payment of salaries owed for May, with retrenchment notices attributing this to the firm's "pending liquidation". CCIC Singapore was set up in 1989 and has its registered address at Singapore Science Park. Its customers include Shell, BP, Total, Exxon Mobil and major Chinese petrochemical corporations, according to CCIC's website. Parent company CCIC was established in 1980 and is part of China's State-Owned Assets Supervision and Administration Commission of the State Council. The US has blacklisted CCIC Singapore for helping to obscure the origins of Iranian oil, which is typically done through numerous ship-to-ship transfers, oil blending and false documentation. Sepehr Energy, which is a front company of the Iranian military, "consistently relied" on CCIC Singapore for cargo inspections of oil being delivered to China, according to the US Treasury Department. In 2024, CCIC Singapore provided inspection services during a ship-to-ship transfer of about 2 million barrels of Iranian oil from a sanctioned vessel. That same year, the firm also "likely provided" falsified documents to conceal the identity of another sanctioned vessel and certify its cargo of Iranian oil as Malaysian crude. According to the US Treasury Department, Iran's illicit oil trade funds the development of ballistic missiles and drones as well as regional terrorist groups. The sanctions freeze all US-linked assets of the blacklisted companies and individuals. In addition, any company that is at least half-owned by those sanctioned is also blocked from transactions engaging US businesses or the US financial system.
Online Citizen
3 days ago
- Business
- Online Citizen
Over 300 workers retrenched without pay as CCIC Singapore enters liquidation after US sanctions
Over 300 employees of CCIC Singapore, a subsidiary of a Chinese state-owned enterprise, China Certification and Inspection Group (CCIC), have been retrenched without receiving their May 2025 salaries, following the company's abrupt move into liquidation after being blacklisted by the United States. The sanctions, announced on 13 May 2025, targeted 15 companies, including CCIC Singapore, which the US Treasury Department accused of helping obscure the origin of Iranian oil shipped to China. The firm reportedly provided inspection services during ship-to-ship transfers of sanctioned oil cargo, including one involving 2 million barrels of Iranian oil. CCIC Singapore, founded in 1989 and located at Singapore Science Park, is a wholly-owned subsidiary of China Certification & Inspection Group (CCIC), a Chinese state-owned firm under China's State-Owned Assets Supervision and Administration Commission. Affected employees were formally notified of their retrenchment on 30 May, with terminations effective the next day. According to three employees who spoke to CNA, most of CCIC Singapore's workforce—estimated to number over 300 in Singapore alone—is now jobless. Employees said they were informed that the firm's liquidation process was underway, and retrenchment benefits would only be fully paid by 30 June 2026. In the meantime, workers remain unpaid for May and received only two weeks' salary for every year of service completed. Surveyors and operations staff expressed frustration over the severance arrangement, noting that many relied on overtime and allowances to supplement basic pay. Junior surveyors earn less than S$1,000 monthly in base salary, with senior surveyors earning up to S$1,500. Speaking anonymously, employees expressed anger over the handling of the retrenchments. They described communication from management as inconsistent, citing internal emails that promised job continuity and transfers to a new entity—only to be contradicted within a day. On 14 May, an email from human resources assured employees of legal support and plans to establish a new company, backed by the Beijing headquarters. Staff were told they would be transferred without disruption. However, the following day, a second email urged recipients to disregard the earlier message. Subsequent internal communication revealed the company was downsizing and unable to pay retrenchment benefits due to frozen bank accounts. The firm's managing director later travelled to Beijing for discussions, though staff were not informed of any resolutions before receiving their termination notices. In an email sent to media on 6 June by a staff representative, employees highlighted several grievances: non-payment of wages, inadequate severance packages, lack of transparency, and absence of support for job placement. The letter described the situation as a breach of Singapore's Employment Act. 'Over 300 individuals and their families face immediate financial distress,' the letter read. 'This situation causes significant anxiety and hardship.' The letter further alleged that the offered severance—two weeks per year of service—fell well below Singapore's prevailing retrenchment standards, which can range from one to three months' pay per year of service. Employees also criticised the firm's leadership for failing to provide any apology or assurance, and questioned why CCIC's parent company had not intervened to ensure obligations to Singapore staff were met. 'This is a foreign company. They act like high and mighty, but they leave us in the lurch,' one employee told CNA. 'The top man doesn't even see us, talk to us.' As of now, the Ministry of Manpower, the National Trades Union Congress (NTUC), and the Tripartite Alliance for Dispute Management (TADM) have been approached by affected staff for assistance. CNA has also reached out to CCIC Singapore, its parent company CCIC in China, and relevant authorities for comment. No responses have been published as of the date of this report. The sanctions imposed by the US include a freeze on all US-linked assets of sanctioned entities and block any business engagement involving the US financial system. The US Treasury claims that Iran's illicit oil trade supports weapons development and terrorism, and CCIC Singapore was directly involved in enabling these operations by providing falsified documentation and inspection services. With Singapore-based assets unfrozen, affected employees have also questioned why local resources cannot be used to cover immediate financial obligations, such as salary arrears.
CNA
4 days ago
- Business
- CNA
About 300 employees laid off by China-linked Singapore firm facing US sanctions over Iranian oil shipments
SINGAPORE: A China-linked, Singapore-based firm has laid off hundreds of employees and is going into liquidation after it was slapped with sanctions by the United States last month. CCIC Singapore was among 15 companies blacklisted by the US on May 13 for helping to conceal the origins of Iranian oil being shipped to China. The cargo inspection firm is a wholly-owned subsidiary of China Certification & Inspection Group (CCIC), a Chinese state-owned enterprise headquartered in Beijing. Speaking to CNA on Friday (Jun 6), three affected employees said that staff across all departments of CCIC Singapore were notified of their retrenchments on May 30, and the terminations took effect the next day. Two of the employees said CCIC Singapore has over 400 workers in Singapore and Malaysia, with the majority based in Singapore. A third employee said the firm has more than 300 workers in Singapore alone. The employees, who spoke on condition of anonymity, said the company had delayed the payment of salaries owed for May. Retrenchment notices attributed this to the firm's "pending liquidation". They also took issue with the severance pay of two weeks' salary for every year of service completed, especially for surveyors who rely on overtime pay and allowances to supplement their basic salaries. Junior surveyors earn less than S$1,000 in basic salary a month, while more senior surveyors may earn between S$1,000 and S$1,500, two of the employees said. According to the employees, CCIC Singapore is not unionised. Individual workers have reached out to the National Trades Union Congress (NTUC) and the Tripartite Alliance for Dispute Management (TADM) for assistance. CNA has contacted CCIC Singapore, its parent company CCIC, the Ministry of Trade and Industry and NTUC for comment. US SANCTIONS CCIC Singapore was set up in 1989 and has its registered address at Singapore Science Park. Its customers include Shell, BP, Total, Exxon Mobil and major Chinese petrochemical corporations, according to CCIC's website. Parent company CCIC was established in 1980 and is part of China's State-Owned Assets Supervision and Administration Commission of the State Council. The US blacklisted CCIC Singapore for helping to obscure the origins of Iranian oil, which is typically done through numerous ship-to-ship transfers, oil blending and false documentation. Sepehr Energy, which is a front company of Iran's military, "consistently relied" on CCIC Singapore for cargo inspections of oil being delivered to China, according to the US Treasury Department. In 2024, CCIC Singapore provided inspection services during a ship-to-ship transfer of about 2 million barrels of Iranian oil from a sanctioned vessel. That same year, the firm also "likely provided" falsified documents to conceal the identity of another sanctioned vessel and certify its cargo of Iranian oil as Malaysian crude. According to the US Treasury Department, Iran's illicit oil trade funds the development of ballistic missiles and drones as well as regional terrorist groups. The sanctions freeze all US-linked assets of the blacklisted companies and individuals. Any company that is at least half-owned by those sanctioned is also blocked from transactions engaging US businesses or the US financial system. ANGER AMONG EMPLOYEES Two of the affected employees denied knowledge of the activities for which the US sanctioned CCIC Singapore, saying that their departments were not involved. Both employees told CNA they only learnt their firm had been blacklisted when customers started cancelling job orders on May 13, citing the sanctions. The severity of the sanctions did not sink in at first, they said. Over time, their concern over the blacklisting morphed into anger at how the management was communicating with employees. They criticised the firm's "flip-flop" on the impact of the sanctions, and what they called a lack of responsibility and transparency from CCIC Singapore's managing director. "If you really treasure or appreciate ... our efforts (that) we have put into this company, I think probably he has to come and thank us, or say sorry, this type of unfortunate thing happened," said one of the employees. But there was no such expression of apology or regret, he said, adding that before Friday, the company also did not give affected employees any support for job placement or career guidance. "This is a foreign company. They act like high and mighty, they leave us in the lurch, just like that. And I'm very mad because the top man doesn't even see us, talk to us," said the employee. While the company's US-linked assets have been frozen, the employees questioned why its assets in Singapore, including property and equipment, could not be used to pay salaries and retrenchment benefits. They also questioned why the parent company was not helping to ensure that employees were paid. "When your children are in trouble, rightfully, the parents should rescue them, right? Why aren't the HQ rescuing us?" the employee asked. INTERNAL EMAILS The employees showed CNA their retrenchment notices as well as internal company emails, which mark a timeline of how the impact of the sanctions played out for employees. On May 14, CCIC Singapore employees received an email from a human resources (HR) officer acknowledging concerns over the sanctions. The email stated that the company's headquarters was "fully committed to supporting our operations" and it had engaged legal counsel to appeal against the sanctions. "In response to the situation, a new company - fully backed by our HQ - will be established within this month," stated the email. "All employees will be smoothly transferred to the new entity, and operations will continue as usual. There will be no disruption to your roles, responsibilities, or employment terms." However, a day later, employees received another email from the HR department asking them to "disregard" the email from the day before. It made reference to an "internal restructuring initiative" but continued to assure employees that they would receive their salaries and claims as usual. On May 16, heads of department were asked to identify key staff members in preparation for a downsizing exercise. They were also informed that CCIC Singapore was "not in a position" to pay retrenchment benefits as its bank accounts had been frozen. A week later, a company-wide email said that salaries would also be delayed due to the freezing of accounts, and that the firm's managing director was going to Beijing for "high-level discussions". Employees received their retrenchment notices on May 30. These notices stated that the company was going into liquidation and retrenchment benefits would only be fully paid after that process was complete, with an estimated date of Jun 30, 2026.
LBCI
13-05-2025
- Business
- LBCI
US imposes sanctions on companies it says sent Iranian oil to China
The U.S. Treasury Department on Tuesday imposed sanctions on more than 20 companies in a network that it said has long sent Iranian oil to China, days after negotiators from Iran and the United States concluded a fourth round of nuclear talks. The network facilitated the shipment of oil worth billions of dollars to China on behalf of Iran's Armed Forces General Staff and its front company, Sepehr Energy, Treasury said. The department sanctioned companies including CCIC Singapore PTE, which it said helped Sepehr by concealing the oil's Iranian origins and carried out pre-delivery inspections required before oil was transferred to China. It also sanctioned Huangdao Inspection and Certification Co Ltd for having assisted Sepehr. Treasury also sanctioned Qingdao Linkrich International Shipping Agency Co Ltd which it said has assisted Sepehr Energy-chartered vessels with their arrival and discharge at Qingdao Port as its designated port agent. Reuters
