Give ecoWise time to comply with SGX RegCo directives, Sias tells shareholders

SECURITIES Investors Association (Singapore), or Sias, urges ecoWise shareholders to allow time for the company to comply with the frontline market regulator's directives.

David Gerald, Sias' CEO, said in a media statement on Wednesday that the investor watchdog is "seriously concerned" with the developments at ecoWise, and is aware of shareholders' concerns regarding the issues and the disagreements among the senior management.

Mr Gerald stated the disagreements between ecoWise's CEO and deputy CEO had led to possible failure of internal controls and effective communication within the company. "This situation should not have been allowed to arise in the first place."

He, however, noted the management and the lead independent director Er Kwong Wah had said they would fully cooperate to comply with the notice of compliance from the Singapore Exchange Regulation (SGX RegCo) in a timely manner.

Thus, Sias urges shareholders to give the company time to resolve the issues. Also, it urges ecoWise to inform shareholders about the status of the matter and address their concerns upon satisfying the SGX RegCo's directive.

The market regulator had directed ecoWise to appoint two new independent directors, commission an internal audit and an audit of its first-half 2021 results, as well as to form a new auditing committee.

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The compliance notice came after ecoWise reported that its CEO Lee Thiam Seng had changed the locks of its server room while Mr Lee had flagged concerns about the day-to-day management by deputy CEO Cao Shi Xuan.

The Catalist-listed waste management company closed at 7.8 Singapore cents on June 14, before trading was halted on June 15 and eventually turned into a suspension on June 18.