Hyflux’s former CEO was charged in court on May 5 with three additional offences under the Companies Act (CA) following further investigations.
In a joint statement, authorities said Lum Ooi Lin (also known as Olivia Lum) was charged with new offences in her failure to exercise “reasonable diligence” in the discharge of her duties as a director.
Lum was charged with a count each under the CA’s section 157(1) read with section 157(3) for the approvals of the release of two unaudited financial statements in 2017, both of which omitted the disclosure of US$33.5 million worth of bank deposits, and an unaudited financial statement in 2018 which omitted the disclosure of US$46.5 million worth of bank deposits.
Hyflux had undertaken not to withdraw from these bank deposits, which were not disclosed as restricted bank balances.
These statements were for Hyflux’s 3QFY2017 ended Sep 30, 2017, its financial year ended Dec 31, 2017, and its first quarter financial statements for the period ended March 31, 2018.
If convicted, she faces imprisonment of up to 12 months or a fine not exceeding $5,000 on each section 157 charge.
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Lum already faces three charges handed to her in court on Nov 17, 2022.
Last year, Lum was charged with one count under the SFA’s section 203(2) read with section 331(1) for consenting to Hyflux’s deliberate failure to release information relating to the Tuaspring integrated water and power project even though such disclosures were required under the listing rules of the Singapore Exchange (SGX).
She was also charged with another count under the SFA’s section 251(1)b read with sections 253(4)(b)(i) and 277(3) for Hyflux’s omission to state the same information relating to Tuaspring in its offer information statement (OIS) in 2011. The OIS was issued for the offer of $200 million for 6% preference shares on April 13, 2011.
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Lum was further charged with one count under the CA’s section 201(5) read with section 204(1) for failing to ensure Hyflux’s compliance with accounting standards for its financial statements for the FY2017 ended 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.
If convicted, she faces imprisonment of up to seven years, a fine not exceeding $250,000, or both, on each charge under the SFA section 203; imprisonment of up to two years, a maximum fine of $150,000 or both on each section 253 SFA charge; and a maximum fine of $50,000 on the charge under the CA.
An independent director of Hyflux, Lee Joo Hai, was also charged on March 13 for his negligence in connection with Hyflux’s intentional failure to disclose information relating to the Tuaspring Integrated Water and Power Project when such disclosure was required under the SGX Listing Rules.
Lee left Singapore before investigations commenced and was arrested in Malaysia on March 12, with assistance from the Royal Malaysia Police.
If convicted, he faces imprisonment of up to seven years, a fine not exceeding $250,000, or both.
