Eneco Energy, better known by its former name Ramba Energy, has possibly breached the Companies Act and the SGX RegCo is referring the case upwards for further probes.
In 2019, it was ordered by SGX RegCo to appoint an independent reviewer to look into the circumstances surrounding the payment of US$2.88 million by Eneco Energy’s subsidiary to an Indonesian broker in November 2018.
This fee was equivalent to more than a third of the company’s available cash balance at the material time.
The reviewer Deloitte & Touche, which released the findings on July 8, says it wasn’t able to verify if the transfers of the money took place between Eneco Energy’s bank and the broker PT Mandiri Pratama Khatulistiwa (MPK).
The broker was appointed to purportedly help the company secure a bank guarantee.
“The parties declined to be interviewed. The engagement of MPK and disbursement of funds did not comply with the group’s internal policies.
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“Based on Deloitte’s due diligence, it further noted that MPK did not appear to be in the business of financial services. Deloitte was also unable to obtain further information on MPK for the same reasons cited above,” says SGX RegCo.
Eneco Energy is also in potential breach of listing rules for not updating the status of an exploration permit, which is deemed material for a company in oil exploration.
“The quality of disclosures is fundamentally important to the operation of a fair and efficient market. Internal controls are also a crucial check on the exercise of executive powers,” says SGX RegCo.
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“Where investigations indicate breaches of the listing rules, SGX RegCo will proceed to take disciplinary actions against the culpable parties,” the exchange’s regulator adds.
Eneco Energy shares have been suspended from trading since March 9 2020.
