CAD, MAS and Acra open joint probe into Hyflux

THE Commercial Affairs Department (CAD) of the Singapore Police Force, the Monetary Authority of Singapore (MAS) and the Accounting and Corporate Regulatory Authority (Acra) have launched a joint investigation into Hyflux and its current and former directors for suspected false and misleading statements and breaches of disclosure requirements under the Securities and Futures Act, as well as non-compliance with accounting standards under the Companies Act.

The investigation follows from a review into Hyflux-related disclosure, and compliance with accounting and auditing standards that was announced by Acra, MAS and the Singapore Exchange Regulation on April 16 last year, the authorities said in a statement on Tuesday.

"The review disclosed reasons to suspect that offences may have been committed. The investigation will ascertain whether there were lapses in Hyflux's disclosures concerning the Tuaspring Integrated Water and Power Project (Tuaspring IWPP), as well as non-compliance with accounting standards between 2011 and 2018," they said.

During the investigation, CAD, MAS and Acra obtained accounting and other corporate records from Hyflux and its subsidiary Tuaspring Pte Ltd. Hyflux's directors and key officers who were involved in the Tuaspring IWPP have also been interviewed by the authorities.

The criminal investigations are separate from and do not pertain to Hyflux's ongoing corporate rescue process. The investigations are not intended to interfere with Hyflux's current reorganisation plans as it focuses on determining the role of the subjects in the alleged disclosure lapses and non-compliance with accounting standards between 2011 and 2018, the authorities said.