Multi-Chem auditors question S$1.6 million payment for CapitaLand vouchers

THE auditors of mainboard-listed Multi-Chem have raised concerns over the manner in which the company handled the S$1.6 million payment for vouchers used for marketing and promotional purposes.

Multi-Chem, which distributes products for cybersecurity and network performance, said the auditors’ review may trigger a broader review of other matters. The findings may have an impact on the group’s financial statements for the year ended Dec 31, 2023.

Multi-Chem said in a Monday (Mar 25) bourse filing that the company had paid the S$1.6 million for CapitaLand vouchers into the personal bank accounts of two of its employees.

Multi-Chem had used the vouchers for marketing and promotions on behalf of a vendor.

After the amount was transferred to the two employees, the employees on-paid the money to an employee of the vendor, Multi-Chem said, without specifying whether the sum was transferred into a personal or corporate account.

The company’s statutory auditors and the Audit and Risk Committee are seeking supporting evidence from the management and the vendor that the amount had been used in the manner described.

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Any future payments by Multi-Chem for marketing and promotional purposes for the vendor will need the prior consent of the Audit and Risk Committee.

Shares of the group closed at S$2.380 on Mar 20 before a trading halt was called. The trading halt was lifted on Monday evening following the announcement.