TEE International enhances internal policies amidst company funds breach

Cheque signatories and IP transactions will be dealt with stricter measures.

TEE International has run a review of its internal policies, aiming to enhance the existing procedures in light of the confirmed unauthorised remittances by ex-company director Phua Chian Kin, said in its bourse filing.

Following an external investigation, Phua admitted to using company funds for his personal use. The cheques for the remittances were said to be signed without supporting documents, despite the presence of established policies and procedures in place.

Since the remittances came to light, the company had commissioned its internal auditor Protiviti in August 2019, to conduct a review of the remittances and to provide recommendations for improvements. 

In September 2019, the number of signatories required for approval of payments over $50,000 has been increased from two to three. The interim group chief executive office (GCE) and the Group CFO are prohibited from jointly approving payments as well. The CFO will also not be allowed to jointly approve payments with the financial controller. 

The company has also enhanced the reporting of the company’s related party (RP) or interested person (IP) transactions. The company said that a comprehensive and consolidated RP/IP register is now maintained by the human resources department based on the lists of related parties submitted by the staff to their managers quarterly. 

The testing of the implementation of enhanced policies and procedures is part of the current 3-year internal audit plan. Moving forward, the internal auditors are said to conduct tests on payments and IPT on a half-yearly basis in the current 3-year plan. 

Following the release of the external investigator’s findings, Phua has since ceased to be a director and employee of TEE International. The company is presently in the process of finding a replacement for the group chief financial officer.