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SGX hits Trek 2000 with notice of compliance, seeks EGM and independent review
THE Singapore Exchange (SGX) has slapped a notice of compliance on mainboard-listed technology provider Trek 2000 International, demanding that the company hold an extraordinary general meeting as soon as possible to vote on the continued appointment of key executives implicated in a recent forensic review of the company's dealings.
Citing concerns about the adequacy and effectiveness of the company's internal controls, SGX also instructed the company to appoint independent professionals to undertake a review of its corporate governance practices.
The bourse operator also said in the notice that Trek 2000 chairman and chief executive Henn Tan cannot be appointed a director or executive officer in any listed company for the next three years.
The bourse also barred Foo Kok Wah, the president of operations, sales and customised solutions, as well as executive directors Poo Teng Pin and Gurcharan Singh from being appointed directors or executive officers in any listed company for the next three years.
This comes after forensic accountants from RSM Corporate Advisory found potential breaches of various Singapore laws at Trek 2000 and the involvement of current and former senior company officers, including Mr Tan, who founded the company.
Trek had appointed RSM in June 2016 to help conduct an independent review of certain interested party transactions as well as review suspicious transactions which were the subject of Commercial Affairs Department investigations.
Among other things, RSM raised issues involving possible round-tripping transactions, fabrication and alteration of transaction documents, as well as possible fraudulent and erroneous claims under the Productivity and Innovation Credit (PIC) tax scheme.
Mr Tan has denied financial impropriety and said he had not been aware of certain business dealings, including the fabrication of some documents as well as certain transactions that RSM deemed fictitious.
SGX said the company's audit committee and nominating committee chairman Chay Yee Meng has informed the bourse that Mr Tan and Mr Foo have been removed as cheque signatories.
The exchange said it requires confirmation from every member of the board that internal procedures to safeguard the group's cash are adequate and effective.
The confirmation has to be submitted to the exchange by May 4 and will apply to future directors to be appointed by the company, until further notice.
Trek 2000 invented the revolutionary ThumbDrive® USB flash drive about two decades ago.