KS Energy's Kris Wiluan and son under CAD probe
Pair assisting with CAD investigation into potential false
trading and market-rigging
The executive chairman and chief executive of KS Energy and
his son, an executive director at the offshore and marine company, are being
investigated by Singapore's white-collar crime buster.
KS Energy said in a stock exchange filing last Saturday that
Mr Kris Taenar Wiluan and his son Richard James Wiluan had been been
interviewed by the Commercial Affairs Department (CAD) in its investigations
into a potential contravention of Section 197 of the Securities and Futures
Act, which deals with false trading and market-rigging transactions.
The older Wiluan posted police bail and was released after
his interview while his son was released without requiring bail.
"Both have informed the board that they have and will
continue to cooperate fully in the investigations, including granting access to
all their electronic data, IT equipment and data storage devices from January
2015," said KS Energy, adding that it has not been approached by the CAD
regarding its investigations. It also said that the CAD has not revealed any
details to the board.
Both men said they would keep the board updated on the
progress of the investigations.
The company will also make further announcements, as and
when necessary.
Meanwhile, the business operations of the group are
continuing as usual.
Earlier this month, the company disclosed that its
independent auditors from KPMG had flagged "material uncertainty related
to going concern" in relation to its 2016 financial statements.
The auditors noted three issues of going concern.
First, the group made a net loss of $126.3 million, with the
group and company's current liabilities exceeding current assets by $88.2
million and $99.5 million, respectively.
Second, the group's convertible bonds of $61.6 million and
short-term borrowings from a shareholder of $13.3 million are subject to
restructuring.
Third, the group has a capital commitment of $244.8 million
for an asset under construction that is due for delivery on Dec 31.
KS Energy shares are down 9.7 per cent at 8.4 cents so far
this year.
Straits Times
10 April 2017
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