SGX queries Allied Tech over executive director; company to respond by April 14

ALLIED Technologies on Monday said it received several queries from the Singapore Exchange Regulation (SGX RegCo) on Saturday regarding executive director Kenneth Low.

The Catalist-listed precision engineering firm said it will release its responses to these queries by April 14. It is in the midst of working with various parties, including its legal advisers, to consult, prepare, verify, and compile its responses.

The queries came one day after Allied Tech said Mr Low was called in by the Commercial Affairs Department (CAD) on April 7 and released on bail bond on the same day. No formal charges have been filed, the company said.

The regulatory arm of SGX asked Allied Tech why it only announced these developments on April 9 when they occurred on April 7. Allied Tech was also asked to clarify if the company or Mr Low was served a Section 20 CPC order to produce certain documents to the CAD.

SGX RegCo sought clarification on whether the CAD arrested, interviewed and required Mr Low to surrender his passport in the current investigation. The regulatory arm also asked if there were any conditions or restrictions imposed on Mr Low.

Allied Tech was asked to clarify the situation over Mr Low being named the co-accused in five of the charges that former lawyer Jeffrey Ong Su Aun is facing for the alleged misappropriation of Allied Tech's escrow funds.

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In addition, SGX RegCo asked Allied Tech to provide its nominating committee's assessment and opinion on Mr Low's suitability to remain on the company's board or key management. It also asked the company to explain if its management and operations are impacted by this event.

Two years ago, Allied Tech reported to the police that over S$33 million held in escrow by JLC Advisors had gone missing while Ong, who was then the law firm's managing partner, became uncontactable.

Ong has since alleged that Mr Low and Allied Tech's substantial investor Lin Tah Hwa had directed the release of the escrow funds.

Ong is seeking to be bailed out to pursue civil action against the individuals he claims to be responsible for the misappropriated funds. His bail review application will be heard in court on Tuesday.