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 issu...
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Lee Meixian
21 August 2015
Gold miner LionGold Corp said on Friday its independent auditors, PricewaterhouseCoopers (PwC), have issued a disclaimer of opinion for the company’s FY2014/2015 financial statements.
PwC said it was supposed to express an opinion on the financial statements after conducting its audit, but could not get enough appropriate audit evidence to provide a basis for an audit opinion.
It took issue with two matters.
First, the group had reported a total loss of S$61.34 million and net cash outflow of S$9.5 million for FY2014/2015. It also said it is exposed to certain material uncertainties in relation to guarantees provided and contingent liabilities that could result in significant financial obligations in the future.
But while the group has taken initiatives to get funding for its investment and operational needs, PwC was unable to obtain enough audit evidence on the likely outcome of these initiatives, and so could not determine if the group can continue operating.
“If the group is unable to raise the required funding, it may be unable to continue in operational existence for the foreseeable future and adjustments would have to be made to the financial statements,” it said.
This is compounded with the fact that in April 2014, the group was also served notices by the Commercial Affairs Department (CAD) of the Singapore Police Force amid investigations into suspected trading irregularities. As the CAD has not provided details of its investigation, PwC also could not ascertain whether the investigation would impact the group’s ongoing business operations, as well as how significant an adjustment has to be made to the financial statements arising from the investigation.
“These factors indicate the existence of material uncertainties which may cast significant doubt about the ability of the company and the group to continue as going concerns. The financial statements do not include the adjustments that would result if the company and the group are unable to continue as going concerns,” it said.
Secondly, the group had included in the loss from discontinued operations, net of tax, in the consolidated statement of comprehensive income, a loss of S$6.1 million, attributed to a subsidiary before it had been discontinued and deconsolidated. But PwC said it could not get enough audit evidence on this loss, and so could not determine if any adjustment to the financial statements was needed.
“Because of the significance of the matters described. . . we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Accordingly, we do not express an opinion on the financial statements,” it said.
LionGold is holding its annual general meeting on Sept 14, 2015, and is proposing, as one of its resolutions, to change its auditors from PwC to Baker Tilly. PwC has been its auditors since December 2012.
Explaining its proposal, it said this is to reduce costs, as the company’s market capitalisation has decreased significantly and the company has reduced its scope of operations.
Baker Tilly, it said, is “suitably qualified and able to provide audit services to the company at more competitive fees”.
The board has accepted the audit committee’s recommendation to appoint Baker Tilly in place of PwC for FY2015/2016, subject to shareholders’ approval.