China Environment lapses referred to the authorities; SGX RegCo reprimands company, former executives
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Annabeth Leow
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CHINA Environment and its former head honchos have been publicly reprimanded by the Singapore bourse regulator over false statements and disclosure failures.
Singapore Exchange Regulation (SGX RegCo) rapped the company over its knuckles in an announcement on Friday for the lapses in its FY2013 and FY2014 annual reports.
It has referred the non-existent trade receivables and false and misleading financial statements to the relevant authorities, SGX RegCo added.
Former executive chairman Huang Min, former chief executive Wu Jida and former chief financial officer Chiar Choon Teck were also reprimanded, and SGX RegCo has advised Singapore-listed firms to consult it before appointing them as directors or executive officers.
SGX RegCo issued its reprimand over non-existent trade receivables from Chinese companies, amounting to several hundred million yuan. The regulator also flagged an undisclosed corporate guarantee by a wholly-owned Chinese subsidiary over a 20 million yuan (S$4.09 million) loan.
SGX RegCo noted that Mr Huang was legal representative of the unit behind the undisclosed guarantee and non-existent trade receivables, and that Mr Wu was general manager. Mr Chiar was responsible for company financial statements at the time.
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"SGX RegCo is of the view that they have failed to demonstrate the character and integrity expected of directors and management of listed issuers," it concluded.
China Environment shares have been suspended from trading since June 2016.
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