Hot stock: Lum Chang shares sink on MD’s involvement in Iswaran probe

SHARES of Lum Chang fell more than 10 per cent on Tuesday (Mar 26) after the company revealed that its managing director, David Lum, had “attended several interviews” with the Corrupt Practices Investigation Bureau (CPIB) to assist on the latest charges filed against Singapore’s former transport minister S Iswaran.

As at 9.54 am on Tuesday, Lum Chang had fallen as much as 10.3 per cent or S$0.03 to S$0.26. It later recovered to S$0.285, down S$0.005 or 1.7 per cent, with 50,000 shares transacted as at 11 am.

The counter ended the day at S$0.26, down S$0.03 or 10.4 per cent, with 56,000 shares changing hands. No married deals were recorded, according to ShareInvestor data.

In a response to Singapore Exchange’s queries late on Monday, the mainboard-listed company said that no charges have been filed against Lum, nor has any restriction been imposed on him by the CPIB. It also maintained that after considering Iswaran’s charges and Lum’s alleged involvement, the company deemed Lum suitable to carry out his duties and responsibilities in his current role. This is “unless there are subsequent developments which require the board and nominating committee to make a reassessment”.

Lum Chang’s latest statement was made after The Business Times reported that Iswaran was facing eight counts of obtaining valuable items worth S$18,956.94 in total from Lum, including a Brompton bicycle valued at about S$7,900.

Golf equipment, whisky and wine were among the other items.

Iswaran was transport minister when he allegedly obtained these valuables between November 2021 and November 2022. 

It was also during this period that Lum Chang’s subsidiary, Lum Chang Building Contractors, was dealing in the “addition and alteration works to existing Tanah Merah station and existing viaducts” with the Land Transport Authority (LTA).

LTA more recently stated that it had not awarded any contract to Lum Chang Building Contractors since 2019.