KLW not the first scandal of Catalist regime

WE refer to the article "Serious lapses at KLW could taint Catalist's clean record" (BT, Nov 12) by Kenneth Lim and wish to clarify the following:

The Catalist regime was introduced on Nov 26, 2007. The industry has seen two instances where major internal control lapses have come to light where Catalist-listed companies were involved. In the case of Scorpio East Holdings Ltd (now known as KOP Limited upon successful reverse takeover), there were alleged irregularities pertaining to the transactions related to contracts for several Chinese movies as well as concerts by Taiwanese performer Jay Chou and K-pop group Honey, now known as SKarf. It was noted by the audit committee of the company that several material contracts were entered into without the knowledge of the board.

A company is required to appoint a full sponsor if it wishes to list on the Catalist board and, once listed, must remain sponsored at all times. Companies which have been listed on the Catalist board for more than three years can appoint a continuing sponsor. The role that a sponsor plays in relation to a Catalist-listed company is covered under the Catalist rules of Singapore Exchange (SGX).