SGX RegCo to further investigate Eneco Energy for potential breaches of listing rules

SINGAPORE Exchange Regulation (SGX RegCo) said on Friday (Jul 8) that it will further investigate Eneco Energy, formerly known as Ramba Energy, for potential listing rule breaches after Deloitte published its findings on the company.

Deloitte had been appointed as an independent reviewer of the oil and gas producer in September 2019 to look into the circumstances surrounding a US$2.88 million payment that the company’s subsidiary made to an Indonesian broker in November 2018.

According to Deloitte’s findings, the company’s subsidiary, Ramba Energy West Jambi’s (REWJ) exploratory permit for the West Jambi concession had expired on Sep 21, 2016. To extend the permit, the company had to produce a US$2.88 million bank guarantee.

However, when it was not able to do so after approaching 9 insurance parties and banks, REWJ director and general manager Bambang Satya Murti suggested that Eneco’s chief executive Aditya Wisnuwardana Seky Soeryadjaya appoint an indonesian broker, Mandiri Pratama Khatulistiwa (MPK), to assist in procuring the bank guarantee.

Soeryadjaya later transferred a total of US$2.9 million, or about 36.19 per cent of the group’s cash balance at the time, through his own personal bank account to MPK. Deloitte could not verify the transfers with the bank and MPK as they declined to be interviewed.

Deloitte said that based on its due diligence, MPK did not appear to be in the business of financial services.

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The company announced the expiry of the permit for the concession only on Feb 1, 2021. 

In light of these findings, Deloitte highlighted potential listing rule breaches as well as potential contraventions of sections 157 and 199 of the Companies Act by Soeryadjaya and Eneco Energy respectively.

SGX RegCo said that it will investigate further into the potential listing rule breaches and report the alleged Companies Act offences to the relevant authorities.

Trading in the company’s shares has been suspended since Mar 9, 2020.