Media has reported that Wilmar International, the world's largest palm oil company, is facing a tax fraud probe by the Indonesian authorities. When the news of the probe broke pout, Wilmar's shares dropped 7%, one of the biggest one-day drop for the company.
It has been reported that the authorities are investigating a possible evasion of $393 million in taxes.
In a statement, Wilmar has denied of any wrongdoing.
In an interesting twist, a group of Indonesian lawmakers is asking to curb the powers of the tax office. They are saying that companies such as Wilmar should take legal action against the tax office if they are treated unfairly during the investigation.
In an unrelated report last week, San Francisco based campaigner CorpWatch, said accused ADM of complicity in forest destruction and child labour in palm oil operations. The report also mentioned ADM's linked with Wilmar pointing out that ADM has 16% stake in Wilmar.