Accrelist chairman assisting with CPIB probe

Singapore

TERENCE Tea, the executive chairman of Catalist-listed Accrelist and its subsidiary Jubilee Industries Holdings, has been asked to assist with a probe by the Corrupt Practices Investigation Bureau (CPIB).

Two Jubilee senior management staff were also requested to assist with investigations, Accrelist and Jubilee said on Tuesday in separate regulatory updates.

CPIB had requested their assistance on Feb 25, but the companies said they had not been able to make the announcements earlier "due to the Covid-19 situation and scheduling".

The investigations relate to certain expenses incurred and a payment made by Honfoong Plastic Industries - a 70 per cent owned Jubilee subsidiary - during the Chinese New Year period.

As at Tuesday, Accrelist and Jubilee said the expenses and payment are not material to their financial positions, based on information available that includes the nature and scope of investigations.

Mr Tea and one of the Jubilee senior management staff have posted bail in relation to alleged offences and are providing full assistance to the CPIB with respect to the investigations.

The alleged offences fall under Section 6(b) of the Prevention of Corruption Act (Chapter 241), both statements added.

The boards of both companies have accepted their respective nominating committees' recommendation that Mr Tea and both management personnel should continue their responsibilities and duties to ensure business continuity.

The nominating committees had assessed the situation and are of the view that Mr Tea's roles and responsibilities should continue as normal since investigations are ongoing and no formal charges have been made against any person. His ability in overseeing and managing the companies has not been compromised as well, the companies said.

Mr Tea has recused himself from the nominating committees' assessments on the matter.

He currently holds the position of managing director at Accrelist and chief executive at Jubilee, on top of his executive chairman remit at both companies.

He was appointed as Accrelist's executive chairman in March 2013, a move which prompted a query from the Singapore Exchange. The query requested the bases for Accrelist's nominating committee's recommendation on his appointment, along with the sponsor's advice on the suitability of Mr Tea for the role.

Mr Tea took on the additional role of managing director for Accrelist in December 2013.

Formerly known as WE Holdings, Accrelist changed its name on Nov 11, 2016 to reflect its new focus on "corporate accretion services". Since then, the stock has recorded a negative total return of 21.4 per cent.

At Jubilee, Mr Tea took on the role of managing director in May 2015. He was redesignated as non-executive chairman in October 2015.

In August 2019, he was appointed executive chairman and chief executive of Jubilee.

Catalist-listed Jubilee's main business is the distribution of electronics components, plastic injection moulding, mould design and fabrication services.

Accrelist shares closed down 0.1 Singapore cents or 2.2 per cent at 4.5 cents on Monday, while Jubilee shares last traded at five Singapore cents on Feb 27.