Sakae responds to Sias, says Deloitte's opinion 'represents positive progress'

SAKAE Holdings on Thursday responded to The Business Times' May 17 article which carried comments in a press statement issued by the Securities Investors Association (Singapore) or Sias.

Referring to a May 12 regulatory update which contained auditors' reports on the company for the year ended June 2019, Sakae in its latest statement claimed that Deloitte issued a "qualified opinion which represents a positive progress from the disclaimer of opinion in FY2019".

In response to Sias' request that Sakae's internal audit function be performed by independent service providers directly reporting to the audit committee (AC), Sakae clarified that its internal selection of "independent professional internal auditors" and the scope of internal audit are approved by the company's AC.

Sakae's AC also receives the report of the internal auditors directly, it said.

Regarding Sias' observation that not all recommendations by KPMG Services, Deloitte and its appointed external consultant had been implemented, the group highlighted that its implementation of policies which address the recommendations have been done progressively since July 2019.

It added that these policies will continue to be refined and implemented taking into consideration the said recommendations.

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On Sias' request for a response to concerns raised by Sias on Sakae's 2020 annual report, the group said it has "responded where necessary and appropriate to do so" through its announcements to the public.

"(Sakae) also appreciates the close collaboration and working relationship it has with the SGX Regco," it added.

The group's share price remained unchanged at 14.4 Singapore cents as at 9.56am, after its statement was filed.