Reappointment of ex-CEO to board 'essential': Raffles Infrastructure

RAFFLES Infrastructure on Monday said that it is "essential" for ex-chief executive Wu Xinhua to be reappointed to the board as his cooperation is required on matters relating to the ongoing special audit conducted by KPMG.

"He is the only remaining director from the previous board and the SGX complaints made against Mr Wu were filed during his tenure as the executive chairman and chief executive officer of the company," said Raffles Infrastructure, in response to an SGX query about the group's decision to re-nominate Mr Wu.

This is despite the board being unable to receive assurance from the ex-CEO that the financial records have been properly maintained, the financial statements give a true and fair view of the company's operations and finances, and the company's risk management and internal control systems are effective.

Raffles Infrastructure added that Mr Wu was redesignated a non-executive non-independent director on Oct 23, 2017 and no longer holds any executive power in the company. He stepped down as CEO on Oct 23, 2017.

It also said that it will be appointing an audit firm in April to assess the company's internal control procedures. It said that prior to the lifting from suspension, the board had identified "potential areas of concern and weaknesses" and that the audit committee agrees with the board that the company did not have an effective internal control to mitigate possible risk and weakness.

Responding to another SGX query about the use of the initial public offering proceeds, the group said it is unable to confirm the use of the proceeds as it is awaiting the special audit report to provide clarity over the past years' state of affairs, including movement of funds and subsequent follow-up investigations, if needed.