Metech JV files lawsuit against ex-director Deng Yiming over missing diamonds 

CATALIST-LISTED Metech International on Monday (Mar 13) said a lawsuit has been filed against Deng Yiming, one of the owners of its subsidiary’s former joint venture (JV) partner X Diamond Capital, over missing diamond seeds and loose diamonds. 

The pieces were last in Deng’s possession, and he had, to date, not satisfactorily addressed issues relating to them, Metech said in a bourse filing. 

The JV entity, Asian Eco Technology (AET) – established on Sep 24, 2021 between Metech’s wholly-owned subsidiary, Asian Green Tech (AGT), and X Diamond Capital to manufacture and distribute lab-grown diamonds – had thus commenced legal action in the General Division of the High Court against Deng.

On Monday, Metech also said AET’s directors, which used to include Deng as well, had filed a police report on issues relating to the missing diamond seeds and loose diamonds on Feb 14.

This was after AGT on Jan 17 issued a default notice in writing to X Diamond Capital to terminate the JV agreement with the partner. It was on grounds that the company and its appointed directors in AET, namely Deng and Yang Hanyu, failed to satisfactorily address numerous issues and irregularities relating to the JV.

Apart from missing diamond seeds and loose diamonds, there were also issues relating to outstanding loan advances, irregularities with the importation of machines supplied to AET, and the sale of machines to AET at an inflated price, Metech had noted.

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Deng had been removed as AET’s director by a members’ resolution in writing dated Jan 17, which was passed on the same day.

Metech closed up 52.2 per cent at S$0.07 on Monday.