Allied Tech board conducts special audit in response to latest allegations

ALLIED Technologies’ board announced on Monday that the company would be consulting its special auditor, PricewaterhouseCoopers Risk Services (PwC), and its auditors at the material time, Ernst & Young LLP, among others, in response to the allegations against its executive director Kenneth Low Si Ren and investor Lin Tah Hwa.

The Nominating Committee will also conduct its internal review relating to the allegations, according to a press statement.

This came after former managing partner of JLC Advisors Jeffrey Ong Su Aun alleged that Mr Low and Mr Lin were the ones responsible for the misappropriated funds of precision engineering firm Allied Tech two years ago.

In his affidavit to support his bail review application, he claimed that Mr Low and Mr Lin were driving the round-tripping and sham transactions involving Allied Tech, and that many of the transactions were not substantiated by the actual flow of funds as they were merely accounting entries to set off against some sale of assets.

Ong cited a placement of shares in 2017 by Allied Tech, for example, that was reported to have raised S$33.8 million in proceeds - held by JLC in escrow - but S$11.7 million from the first tranche was used instead to pay for the second tranche, resulting in much less than the reported amount of proceeds, the court heard on Friday in Ong's bail review application.

In its statement, the company stated that it would await the conclusion of the PwC audit or further information before deciding the next steps to take in order to recover the escrow monies placed with JLC.

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According to the company, this was "in the interest of not incurring unnecessary costs and is in the view of the fact that there is already an ongoing special audit by PwC and ongoing investigations by the Commercial Affairs Department (CAD)".

In the case where investigations uncover further facts regarding the case, the board said that the company would conduct further investigations and apply for joinder of parties in any legal proceedings against JLC.

The company has also "taken all other practicable steps to recover the monies due from JLC", including lodging a police report with the CAD and filing a complaint with the Law Society of Singapore. Further, the company has - through its solicitors - written to DBS, where the escrow monies were held, to request for statements and documents related to the escrow account.

However, DBS's solicitors have informed the firm's solicitors that JLC has declined to allow DBS to provide the documents sought by the company, according to the announcement.

READ MORE:

• Jeffrey Ong implicates Allied Tech executive director and investor in misappropriation case
• JLC Advisors' Jeffrey Ong charged with misappropriating S$17.5m from CW Group
• Jeffrey Ong hit with 4 more charges involving S$11.7m linked to Allied Tech
• S$33m missing from JLC law firm; lawyer uncontactable