TWO former senior employees of UOB Kay Hian Private Limited (UOBKH) were charged on Wednesday for allegedly lying to the Monetary Authority of Singapore (MAS) in relation to reports on a then Catalist aspirant. Lan Kang Ming, 38, and Wee Toon Lee, 34, each face three charges of providing MAS with false information in October 2018 in relation to due diligence reports on an unidentified company applying to list on the Catalist board of the Singapore Exchange. MAS said in a media statement on Wednesday that it was performing an onsite inspection of UOBKH between June and August 2018, to assess the latter's controls, policies and procedures in relation to its role as an issue manager for Initial Public Offering (IPOs). During the examination, Lan and Wee were said to have provided different versions of a due diligence report relating to background checks on a company applying to be listed on the Catalist board of the Singapore Exchange. UOBKH had acted as the issue manager
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By FELDA CHAY
05 May 2011
The Singapore Exchange (SGX) has queried The Think Environmental Company (TTEC) on two of its latest gold-mining investments, asking how some of the production targets were derived given that feasibility studies on the mining sites were not carried out.
In two recent press statements on the respective gold investments it made in Ghana and the Philippines, TTEC set out various targets that it hoped to meet for its new gold business. These include increasing its ownership of artisanal mines to 12-20 by March 2013, and securing 20 concessions by next March. Earlier, the group also said that it wants to produce 3,000 ounces of gold per month by next March.
‘Did the company perform any valuation or feasibility studies on the mines when determining its KPIs, targets and target dates?’ questioned SGX. ‘If so, please disclose details. If not, please clarify why no valuation or feasibility study was performed.’
In its response yesterday, TTEC said feasibility studies were not done since these involve ‘considerable time and financial expense before a report of international standard is produced and can be relied on’.
‘The company has only commenced its venture into the Philippines, as well as Ghana and will need to conduct more groundwork before commissioning a feasibility study on the sites in these territories,’ it said.
It left the door open on whether a valuation report would be done in the future, saying: ‘The company shall determine whether a valuation report on the sites in the Philippines and Ghana would be required at a later date.’
Another question SGX asked was specific to TTEC’s announcement last week that it will invest US$5 million for a 51 per cent stake in African Stellar (West Africa) Ltd, or Aswa, which it said owns three mining leases in Ghana.
No valuation was conducted on Aswa because it was unnecessary, it said then, adding that Aswa has undertaken to produce 1,500 ounces of gold per month with a minimum of 50 per cent net profit before June 2012. This will double to 3,000 ounces of gold with a net profit margin of 50 per cent by end- June 2013.
‘As no valuation was conducted on Aswa, please clarify how the company determined that these targets are achievable and can be used as a basis to determine the purchase consideration for Aswa,’ SGX told TTEC.
In its response issued yesterday, the renewable energy-turned-gold mining hopeful said the Aswa management ‘represented to the company (TTEC) that it strongly believes that the targets are achievable provided that it receives the necessary investment and support required’.
‘In addition, the company was informed by Aswa that these targets were based on the recovered gold grades from artisanal workings it had observed over the years and what it believes a gravity recovery solution can do to improve production,’ said TTEC.
Also, given that TTEC will pay for the stake across nine tranches, it can monitor Aswa’s progress, said the company.
TTEC has been on an acquisition spree of late as it seeks to quickly build up its new gold-mining venture. The company has been trying to move away from its office equipment business over the past few years. In 2009, it switched to being a renewable energy firm, even changing its name from the former Asia Tiger Group to reflect its new focus. The green energy business, however, failed to take off, with the company unable to meet the targets it set.