Darco Water reviewing transactions entered into by former CEO

DARCO Water Technologies on Thursday said that it was still conducting an extensive internal review of transactions that the company and its subsidiaries entered into under the direction of the company's former chief executive, Thye Kim Meng.

This encompasses a review of the terms of the transactions and the conduct of the transactions in general, including the due diligence that had been undertaken, as well as any potential conflict of interests.

Following the preliminary findings, the company has sought further information from Mr Thye, who, based on records, was the main driver of  transactions for the Con Dao solar project, the Can Guioc water project and those relating to Darco Engineering Taiwan (DET), including loans that were granted to DET and the disposal of DET.

"As there remain gaps in the information available concerning the transactions, including the basis and rationale for certain actions or omissions noted, following a couple of limited responses from Mr Thye, the management, under the direction of the board and with the help of the company's legal counsel, will continue to seek the previous management's assistance and cooperation," the company said in a statement on Thursday.

For the Con Dao solar project and Can Guioc water project, the management has been in discussions with the counterparties, and will continue to do so, to determine the feasibility of continuing with the projects as well as recovering the payments that had previously been made in advance, should a decision be made to exit them. 

"Subject to the advice and guidance of its legal counsel, the company does not rule out making claims and taking formal legal action against any person whose action or omission has resulted in damage or loss suffered by the group in connection with the transactions," it said.

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