Tritech, Tiong Seng executives charged with corruption involving former LTA deputy group director

Singapore

TWO listed companies were scrambling on Friday to deal with the corruption charges that have ensnared their senior executives and a former Land Transport Authority (LTA) officer.

The Tritech Group announced the resignation of executive director Cai Jungang before market open; Tiong Seng Holdings said its chief executive and executive director Pek Lian Guan and Tiong Seng Contractors director Pay Teow Heng will relinquish their roles for now.

This came as ex-deputy group director of LTA, Henry Foo Yung Thye, 46, was charged on Friday with 36 counts of obtaining or trying to obtain gratification in the form of loans from LTA's contractors and subcontractors, and cheating his colleagues.

Under the Prevention of Corruption Act (PCA), he faces 22 charges for obtaining gratification in the form of loans totalling about S$1.24 million from LTA's contractors and sub-contractors between 2014 and 2019, and one charge for attempting to obtain gratification in the form of a loan of about S$30,000 from a sub-contractor of the LTA early last year. These were in exchange for advancing the business interests of the contractors and sub-contractors with the LTA.

In relation to his offences, Tritech's Cai, 56, and Tiong Seng Contractors' Pay, 52, and Pek, 55, were also charged on Friday.

Cai loaned Foo about S$285,000 to advance the business interests of Tritech Engineering and Testing (Singapore). At Tiong Seng, Pay conspired with Pek to advance loans to Foo totalling about S$350,000.

Cai faces seven charges of corruption, and Pay and Pek, two each. Tiong Seng said both men have denied the alleged offences and will fight the charges.

Pay Sim Tee, an executive director of Tiong Seng Holdings and an executive director of Tiong Seng Contractors, will replace Mr Pek as the CEO of the company and managing director of Tiong Seng Contractors from Aug 1.

He has more than 40 years of experience with the group.

Tiong Seng said it does not expect Pek and Pay's relinquishment of their executive roles to have a major impact on its business, as it has senior management staff in place.

Tritech said on Friday that Cai had informed the board that he had been charged on July 23 under the PCA, and tendered his resignation the same day. He also said that the loans were given to Foo as a "personal loan and in his personal capacity, and not as a gratification or inducement".

While the board has accepted his resignation to "minimise disruptions" from the case, its nominating committee recommended that he remain an employee of the subsidiary and continue performing his current roles, said Tritech, in recognition of his qualifications, experience and familiarity with the business and its customers, and the need for continuity of business operations.

The company said it has existing safeguards in place in its process for securing contracts from customers. However, a further review of Cai's roles and responsibilities will be done accordingly.

Three other individuals and a company that gave Foo loans to advance their business interests were charged on Friday. Another man was also charged.

The pre-trial conference for Cai, Pay and Pek is scheduled for Aug 20, and the trio have been offered bail by the Corrupt Practices Investigation Bureau.

As for Foo, the remaining 13 charges he faces are under the Penal Code for cheating his colleagues at the LTA into extending S$726,500 in loans to him. He did not tell them about his gambling habit and debts.

His pre-trial conference is also scheduled for Aug 20; he was offered bail of S$250,000.

Tritech shares ended 6.25 per cent lower at 1.5 Singapore cents.

Tiong Seng has requested for the lifting of its trading halt, which it called on Friday before the market opened. Its shares last closed at 15.2 Singapore cents on Thursday.