SINGAPORE: Former Hyflux CEO Olivia Lum Ooi Lin was among six people charged on Thursday (Nov 17) over the company's failure to disclose information about the Tuaspring project.
The five others were former chief financial officer Cho Wee Peng and four independent directors of the company.
The charges followed joint investigations launched in June 2020 by the authorities - the Singapore Police Force (SPF), Monetary Authority of Singapore (MAS) and Accounting and Corporate Regulatory Authority (ACRA).
Former CEO Lum was charged with consenting to Hyflux’s intentional failure to disclose information relating to the Tuaspring Integrated Water and Power Project, when such disclosure was required under the Singapore Exchange Listing Rules.
If found guilty, she can be jailed for up to seven years, fined up to S$250,000, or both.
Lum was also charged Hyflux’s omission to state the same information relating to Tuaspring in the 2011 Offer Information Statement, which was issued for the offer of S$200 million, 6 per cent preference shares on Apr 13, 2011.
If found guilty, she can be jailed for up to two years, fined up to S$150,000, or both.
She also received a third charge for failing to ensure that Hyflux made disclosures required under the accounting standards for its financial statements for the financial year ending Dec 31, 2017. This included the failure to disclose the breach of a subsidiary’s loan agreement that permitted its lenders to demand accelerated repayment.
Such offence carries a fine of up to S$50,000.
Former CFO Cho was charged for conniving in Hyflux’s intentional failure to disclose information relating to Tuaspring, when such disclosure was required under the Listing Rules.
Four independent directors at the time - Teo Kiang Kok, Gay Chee Chong, Murugasu Christopher and Rajskar Kuppuswami Mitta - received two charges each.
The first was for their neglect in connection with Hyflux’s intentional failure to disclose information relating to Tuaspring, when such disclosure was required under the Listing Rules, and the second was for Hyflux’s omission to state the same information in the 2011 OIS.
In relation to the 2011 OIS, the authorities have also investigated DBS for its role as issue manager in the offer. No further action will be taken after reviewing the evidence obtained, said the police, the Monetary Authority of Singapore and the Accounting and Corporate Regulatory Authority (ACRA).
"The outcome of ACRA’s inspection on the audits conducted by KPMG, the auditors of Hyflux, will be finalised in due course," said the authorities.
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The five others were former chief financial officer Cho Wee Peng and four independent directors of the company.
The charges followed joint investigations launched in June 2020 by the authorities - the Singapore Police Force (SPF), Monetary Authority of Singapore (MAS) and Accounting and Corporate Regulatory Authority (ACRA).
Former CEO Lum was charged with consenting to Hyflux’s intentional failure to disclose information relating to the Tuaspring Integrated Water and Power Project, when such disclosure was required under the Singapore Exchange Listing Rules.
If found guilty, she can be jailed for up to seven years, fined up to S$250,000, or both.
Lum was also charged Hyflux’s omission to state the same information relating to Tuaspring in the 2011 Offer Information Statement, which was issued for the offer of S$200 million, 6 per cent preference shares on Apr 13, 2011.
If found guilty, she can be jailed for up to two years, fined up to S$150,000, or both.
She also received a third charge for failing to ensure that Hyflux made disclosures required under the accounting standards for its financial statements for the financial year ending Dec 31, 2017. This included the failure to disclose the breach of a subsidiary’s loan agreement that permitted its lenders to demand accelerated repayment.
Such offence carries a fine of up to S$50,000.
Related:
Former CFO Cho was charged for conniving in Hyflux’s intentional failure to disclose information relating to Tuaspring, when such disclosure was required under the Listing Rules.
INDEPENDENT DIRECTORS CHARGED
Four independent directors at the time - Teo Kiang Kok, Gay Chee Chong, Murugasu Christopher and Rajskar Kuppuswami Mitta - received two charges each.
The first was for their neglect in connection with Hyflux’s intentional failure to disclose information relating to Tuaspring, when such disclosure was required under the Listing Rules, and the second was for Hyflux’s omission to state the same information in the 2011 OIS.
In relation to the 2011 OIS, the authorities have also investigated DBS for its role as issue manager in the offer. No further action will be taken after reviewing the evidence obtained, said the police, the Monetary Authority of Singapore and the Accounting and Corporate Regulatory Authority (ACRA).
"The outcome of ACRA’s inspection on the audits conducted by KPMG, the auditors of Hyflux, will be finalised in due course," said the authorities.
Continue reading...