Katrina discloses further details on URA investigation, affirms suitability of CEO

CATALIST-LISTED Katrina Group : 1A0 0% on Wednesday (Jun 29) shared further details on an investigation by the Urban Redevelopment Authority involving the company’s chief executive Alan Goh Keng Chian and 2 employees, in response to queries from the Singapore Exchange.

The company had previously announced that a senior employee and a junior employee of subsidiary ST Hospitality are assisting URA with an investigation. Goh has also received a notice to attend an interview regarding the investigation.

In Wednesday’s filing, Katrina disclosed that the 2 employees of ST Hospitality are a senior revenue manager and a reservation and sales manager. Their work responsibilities are to lead pricing strategy, set rates, oversee sales of ST Hospitality inventory and administration, and handle direct and corporate sales of ST Hospitality.

URA has indicated that the inquiry is into an offence involving short-term accommodation provided by ST Hospitality, but the particulars of the offence were not disclosed. As such, Katrina’s board said that it is unable to confirm the operations and financial impact of the possible breaches of the minimum stay requirement.

Asked by SGX on Goh’s suitability to remain chief executive, the nominating committee (NC) said that he remains suitable as investigations are still ongoing and no charges have been made against him.

“In arriving at this view, the NC and the board have considered the past working relationship with the CEO since his founding of the company. The CEO has always conducted his duties professionally and in the best interests of the Group,” Katrina said.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

The company noted that he heads the formulation of strategic directions and expansion plans in Singapore and overseas markets and manages the overall business development.

Katrina’s sponsor Hong Leong Finance added that the investigation is still ongoing and it is unable to confirm that Goh is the subject of the investigation. His interview is scheduled for Jul 7.

“Taking into account the board’s view and assessment and having found no adverse information on Goh, the sponsor has not found information that may impair his suitability to continue as a director and CEO of the company,” Hong Leong Finance said, adding that it would re-assess his suitability as more information is available.

Thus far, Goh and the 2 employees have not been served with any order to produce documents or asked to surrender any travel documents.

Shares of Katrina closed flat at S$0.047 on Wednesday.