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KLW clarifies new appointments following SGX queries
CATALIST-LISTED doormaker KLW Holdings on Sunday responded to queries from the Singapore Exchange (SGX), regarding its decision to appoint certain individuals - including former managing director Lee Boon Teck - to different positions at the firm, despite their roles in apparent lapses in internal controls and potential breaches of disclosure rules.
PricewaterhouseCoopers (PwC), as KLW's special auditor, had on Nov 4 highlighted issues surrounding a number of term sheets that Mr Lee had undertaken without the knowledge of other board members, as well as payments by the company to Mr Lee and disclosures about how proceeds from capital-raising exercises had been used.
Following the report, KLW appointed Mr Lee as a consultant, citing his "vast experience" in the door-making industry. Mr Lee had been removed from KLW's board on Oct 12 at an extraordinary general meeting (EGM).
But the SGX queried KLW on the rationale behind Mr Lee and others' new designations.
KLW on Sunday said Mr Lee's appointment as consultant is "key to ensure the continuity of the door business", and that his assistance to KLW's chief executive officer Quek Chek Lan would "greatly contribute to shorten the learning curve of (the latter)".
When asked by the SGX for more details on Mr Lee's roles and responsibilities as a consultant, as well as the duration of this appointment, KLW said that Mr Lee will advise Mr Quek on the marketing and manufacturing of doors, and will be on a six-month renewable contract.
"Mr Lee will not have an executive role and will not have any authority to represent KLW in an official capacity. He will not be able to sign any documents for KLW," it added.