The Commercial Affairs Department (CAD) has asked Sen Yue Holdings to produce documents and information related to the offences committed under the Penal Code and the Securities and Futures Act (SFA) for the company’s financial results ended Sept 30, 2015, to 2020.
Sen Yue’s chairman of the audit committee, Mark Chim and executive director and CEO Neo Gim Kiong, on Jan 5, filed a report with the CAD on behalf of the company.
The report was filed after a review by Foo Kon Tan Advisory Services (FKT) found that there was certain non-disclosure of interested person transactions (IPTs).
Under the review, FKT also recommended the company to lodge a report with the authorities to carry out a full investigation as there may have been fraudulent or fictitious transactions made, and that certain criminal offences may have been committed.
As at Jan 27, Sen Yue’s non-executive chairman Koh Mia Seng, as well as certain members of staff Koh Wen An and Priscilla Loh, are still being interviewed by CAD officers.
No formal charge or arrest has been made.
Furthermore, Sen Yue’s nominating committee has recommended removing Koh as director, as the findings from the report “put into question his character and integrity”.
Koh’s resignation is subject to the concurrence of the Singapore Exchange Regulation (SGX RegCo) or the approval of its shareholders through an extraordinary general meeting (EGM).
In the meantime, Koh has been removed from all executive duties from Jan 8.
Neo has assumed Koh’s duties and responsibilities.
Koh was redesignated as non-executive chairman from executive chairman from Jan 13.
Sen Yue says it intends to fully cooperate with the investigations.
In a separate statement released on Jan 28, Sen Yue revealed that DBS Bank had sent a letter of demand (LOD) on Jan 27 to recover some $5.9 million and US$9.0 million ($12.0 million) that was owed to the bank by the company.
The LOD was sent after Sen Yue defaulted on the various banking facilities granted by DBS and secured by a corporate guarantee from the company.
In the letter, DBS has demanded for payment of the sums within three weeks from the date of the letter.
Should Sen Yue fail to do so, the company may be liable to be compulsorily wound up under section 125 of the Insolvency, Restructuring and Dissolution Act 2018.
According to the statement put out by Sen Yue via SGX, DBS also has the right to winding up proceedings as the bank sees fit at any time before the expiry of the aforementioned three weeks if payment is not made.
Sen Yue says it is in discussions with DBS on suitable repayment proposals and will provide future updates if any.
On the evening of Jan 27, Sen Yue also announced that the company was currently under investigation by the Commercial Affairs Depa
See also: SGX RegCo blocks Sen Yue's chairman from ousting fellow directors and Sen Yue suspends trading as boardroom fight spills into the open
