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SGX reprimands KLW, two ex-executives for breach of Catalist rules
THE Singapore Exchange (SGX) on Monday reprimanded door maker KLW Holdings and two former key executives for a breach of Catalist rules. It has referred the case and potential breaches of the law to the relevant authorities.
This comes a day after KLW said that its chief executive officer had resigned due to "other personal commitments".
Among other things, KLW breached the rules when it failed to announce in a timely manner that significant amounts owing to it in respect of property development projects in Indonesia and China were not recovered.
It also wrongly classified and materially misstated S$16.2 million paid in respect of the property development projects in Indonesia and China, as well as the S$1.95 million advanced to the former managing director Lee Boon Teck as "cash and bank balances" in the company's half-year 2014 financial statement. In this instance, the former group financial controller Jaslin Gaw had wilfully caused that breach.
The SGX noted as well that Mr Lee had "wilfully caused" another breach when KLW failed to immediately announce its acquisition of all the shares in Key Bay Furniture Co Ltd. He was the only member of the board who was aware, at the material time, of the acquisition, and failed to inform the board of it.
The reprimand follows a 2015 special audit that found apparent lapses in internal controls and potential breaches of disclosure rules.