Raffles Education responds to SGX Regco; directors currently on bail to stay put

RAFFLES Education has responded to SGX Regulation Company's (RegCo) queries and will not be replacing its directors who are currently out on bail.

In a filing on Monday (Feb 28), the mainboard-listed education provider said that the resignation of almost the entire board of directors could destabilise the business and operations. Raffles Education's Nomination Committee (NC) regards the ongoing investigations by the Commercial Affairs Department (CAD) relates to a one-off historical matter, and does not want to pre-empt or prejudge the outcome of the investigations.

To recap, 5 of Raffles Education's directors were notified of their formal arrest and bail conditions of S$30,000 each. Under the bail conditions, the directors have to routinely attend to the CAD office to assist with ongoing investigations and can travel out of Singapore if they have obtained clearance beforehand. None has been formally charged.

Hence the NC does not believe that the recent development impacts the current directors' ability to perform their duties, their character and integrity or their suitability or ability to continue serving their roles. The NC will monitor material developments relating to the investigations, and the directors will keep the company informed of the subsequent developments.

The NC will redesignate current independent director Lim Siew Mun as lead independent director. Another independent director will be appointed to provide additional oversight as soon as practicable. Lim and the new independent director will form an independent committee, and will be primarily responsible for supervising and reviewing all matters relating to the investigations.

"The formal arrest and bail, and ongoing investigations do not necessarily signify that there will be any further actions taken or charges in the future. At this point in time, there is no intention to appoint a special committee to independently investigate into the circumstances surrounding the Investigations," said Raffles Education.

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