Reclaims Global chairman retains position after conditional warning from CPIB

CONSTRUCTION service provider Reclaims Global on Tuesday (Feb 7) said its executive chairman has been given a conditional warning following investigations under the Prevention of Corruption Act.

The Catalist-listed company said it was informed by executive chairman Chan Chew Leh that investigations conducted by the Corrupt Practices Investigation Bureau (CPIB) were completed on Monday, and that the bureau is satisfied that an offence was committed under Section 6(b) of the act.

The section relates to corrupt transactions with any agent as a reward for any act in relation to the offender’s affairs or business. Those found guilty may be fined up to S$10,000 or jailed up to five years, or both.

Chan received a conditional warning but may be liable for prosecutions if he commits an offence within the next 12 months, Reclaims said in a bourse filing.

Nonetheless, Reclaims said the incident has no impact on the business and operations of the company.

It added that the company’s board has accepted the nominating committee’s recommendation that Chan should continue as executive chairman and director of the company, given that his performance of his duties is not compromised by the incident.

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The incident also did not cause any financial losses or prejudice to the interests of the group, and Chan did not personally benefit from it, Reclaims said.

It also said Chan plays an instrumental and pivotal role in developing the group’s business and has been diligently and competently discharging his duties. Chan first went for an interview with CPIB about two years ago.

Nonetheless, new measures have been introduced within the company, such as requiring all directors and executive officers to make periodic declarations that they have complied with all relevant laws and regulations.

The company called for a trading halt shortly before the market opened on Tuesday and issued the announcement after the market closed.

Reclaims shares closed flat at S$0.11 on Tuesday.