AGV Group responds to SGX queries on police reports filed

Paige Lim

Published Fri, May 6, 2022 · 09:57 PM

THE judicial managers of AGV Group on Friday (May 6) responded to queries raised by the Singapore Exchange Securities Trading (SGX-ST), regarding the filing of police reports against individuals from the group’s subsidiaries for alleged mismanagement and wrongdoings.

On Apr 29, SGX-ST had asked AGV Group to disclose the details of the alleged mismanagement and wrongdoings, as well as the “certain persons” involved.

In response to those queries, the group’s judicial managers Leow Quek Shiong and Gary Loh said in a bourse filing on Friday that they are in the process of arranging for the police reports made in Malaysia to be translated into English. “Subject to the foregoing, the allegations, as understood by the judicial managers, concern irregular selling prices of products which are not in line with market forces (involving AGV Galvanising (Singapore) Pte. Ltd), and customs related offence(s) purportedly committed in Malaysia (involving AGV Galvanising (M) Sdn Bhd.),” they said. SGX-ST had also asked the group to provide the board’s assessment on the impact of the alleged mismanagement and wrongdoings on the company’s operations, the financial results of the company, as well as the materiality and quantum of the former and latter. According to the judicial managers, the police reports were made without prior consultation with either of them. They stated that they are unable to assess the impact, if any, at this point in time, as the allegations “have not yet been verified”. In response to SGX-ST’s other queries, the managers also shared that the “certain persons” involved in the alleged mismanagement and wrongdoings are still part of the group, and hold key management positions in the group.

Separately, the company's sponsor, Hong Leong Finance, noted that the allegations in the police reports “remain unverified” at this point in time. The sponsor also stated that no employee or director of the group has been asked by the police to assist in any investigations in respect of the allegations in the police reports, both managers said.

Last December, the group’s indirect subsidiary, AGV Galvanizing, had received a letter of demand for a sum of RM1.6 million (S$517,900) from RHB Bank. The letter of demand claimed that AGV Galvanizing had failed to pay RHB Bank the sum due under the hire purchase facilities granted by the bank. On Apr 29, 2022, AGV Galvanizing received a writ of summons filed by the solicitors of RHB Bank.

AGV Galvanizing also received another letter of demand last December from solicitors acting on behalf of a Lim Kim Cheei. This was in relation “to an agreement between AGV Galvanizing and Lim for the payment of consultant fees to Lim in relation to the sale and leaseback undertaken by AGV Galvanizing”, according to the group's judicial managers in a separate bourse filing.