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.
10 April 2017