Vallianz says CAD probe into Swiber-linked directors 'not related' to company

VALLIANZ Holdings said on Wednesday two of its non-executive directors, Yeo Jeu Nam and Yeo Chee Neng, were interviewed by the Commercial Affairs Department (CAD) in their capacity as directors of Swiber Holdings - a day after Swiber announced the same - but said the matters "are not related" to Vallianz.

Vallianz, an offshore-support vessel provider, is a former associate of beleaguered energy company Swiber.

"The board wishes to inform that the matters mentioned . . . are not related to the company and the business and operations of the group are not affected by the investigations and will continue as normal," it said in a regulatory filing.

Mr Yeo Jeu Nam was interviewed by CAD as lead independent non-executive director of Swiber, and was, between Nov 30 and Dec 2, 2016, released on bail in relation to alleged infringements under Section 199 of the Securities and Futures Act (Chapter 289 of Singapore). The company was also informed that the investigations are still on-going and that no formal charges have been brought against him.

Mr Yeo Chee Neng was also interviewed by CAD in the course of the investigations in his capacity as the former group CEO and ex-executive director of Swiber. The company was also informed that Mr Yeo Chee Neng was not placed on bail.

Section 199 covers the making of false and misleading disclosures.

Swiber shocked the market in July when it filed a winding-up application amid mounting debt obligations. It reversed course a few days later to seek judicial management instead.

On Oct 31, Singapore Exchange (SGX) found the company had breached a listing rule, and formally rebuked it for "failing to provide a balanced and fair announcement" to the market about a US$710 million project award in West Africa.

SGX alleged Swiber failed to properly disclose that the value of the contract was merely indicative, pending the completion of an engineering design study and the finalisation of a field development plan, when it first announced the deal in 2014.

That fact was also not made clear in 2016, when Swiber announced that the project would be delayed. SGX's reprimand, however, did not cover the 2016 announcement.

"Swiber presented favourable possibilities as certain, or as more probable than is actually the case," SGX said in its rebuke. "The (first) announcement failed to disclose the material conditions that are pre-requisites to the progress of the project and recognition of revenue by Swiber."