No records of alleged loan transactions with Thong Soon Seng: Magnus Energy

MAGNUS Energy Group on Thursday said it is unaware of a person named Thong Soon Seng, whom the company allegedly owes some S$5.1 million including interest, following a letter of demand received by the company. 

"There was no documentation of loans or any transactions with Mr Thong, nor any mention of Mr Thong's name in any of the company's records. As at the date of this announcement, the company and its board do not know who Mr Thong is, nor has it found any records of transactions of any kind with Mr Thong," the oil and gas firm said in response to the Singapore Exchange's queries on who Mr Thong is, and his relationship with the company. 

According to the letter of demand, it is understood that the principal amount allegedly received by the company was S$4 million. 

Based on the bank statements retrieved by the board for the months of September and October 2016, Magnus Energy noted that amounts totalling S$4 million were deposited in Magnus' bank account on or about the dates alleged. Notwithstanding, the statements do not provide details on who the payment is from, or the bank account name and number, Magnus Energy said. 

The company has requested from the bank copies of the alleged cheques which correspond to the dates in the letter of demand. According to the bank statements, Magnus Energy noted that there were cheque deposits of S$1 million on Sept 14, 2016, S$2 million on Oct 7, 2016, and another S$1 million on Oct 10, 2016 into Magnus Energy's bank account. 

Subsequently, cheque deposits of about S$990,000 and S$2.9 million were then transferred to Algae Farm Engineering Sdn Bhd on Sept 16, 2016 and Oct 12, 2016 respectively. 

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

Magnus Energy said that it is currently investigating the matter, and is unaware of the purpose of the alleged loan. 

"Since the Company is not aware of, has no records of, nor has seen a copy of the alleged loan agreement, the board cannot confirm at this point that the company was named as the borrower in the alleged loan agreement... The board confirms that the alleged loan was not recorded in the accounts, financial statements and annual reports of the company," Magnus Energy said.

Separately, the Catalist-listed firm on Wednesday announced that it has filed a lawsuit against seven former directors and officers.

Magnus Energy shares have been suspended and last traded in August 2019.