Scorpio East Holdings directors reprimanded by SGX

The company has breached Catalist Rule 703 by failing to disclose information about the terminated contracts of about S$12 million.

According to SGXNET, the Exchange reprimands Scorpio East Holdings Ltd and the following members of the board of directors of the Company for breach of Catalist Rule 703 and failures of corporate governance:

(a) Mr Hady Hartanto (Executive Director of the Company from 15 March 2011 to 18 August 2011); and
(b) Mr Ho Ah Huat (CEO and Executive Director of the Company from 24 November 2004 to 16 March 2011).

The Exchange also reprimands the following persons:

(a) Mr Wong Teck Yenn (Executive Director of the Company from 15 March 2011 to 2 May  2011) for failures of corporate governance; and
(b) Mr Lim Kien Nam (Financial Controller of the Company from 1 August 2008 to 30 September 2011) for failure to properly discharge his duties and responsibilities as a Financial Controller of a SGX-listed company.

In March 2011, the Audit Committee of the Company learnt that several material contracts had been entered into and/or terminated by the Company and its subsidiaries without the approval or knowledge of the Board. On 25 March 2011, the Board approved the appointment of Stone Forest Corporate Advisory Pte Ltd as its special auditors. On 24 August 2011, the Audit Committee received SFCA’s Special Review Report.

In light of the findings of SFCA’s Report, the Exchange is of the view that the Company has breached Catalist Rule 703 by failing to disclose material information relating to the termination of contracts of about S$12 million.

The Exchange is of the view that Hady Hartanto and Ho Ah Huat have not demonstrated the qualities expected of directors and management of SGX-listed companies as required under Catalist Rules 406(3)(b) and 720. The Exchange is also of the view that Hady Hartanto, Ho Ah Huat and Wong Teck Yenn have failed to comply with Catalist Rule 103(6) to act in the interests of shareholders as a whole.

SGX-listed companies are required to seek the Exchange’s approval before they appoint Hady Hartanto, Ho Ah Huat, Wong Teck Yenn and Lim Kien Nam as directors or as members of their management.