Multi-Chem says CEO, COO to stay put for now amid CPIB probe - The Business Times
[SINGAPORE] The CEO and chief operating officer (COO) of Multi-Chem are “suitable to continue” as company directors, said the mainboard-listed IT distribution company on Tuesday (Sep 22).
It was responding to Singapore Exchange queries after announcing on Sep 17 that the two, as well as two other senior employees, were interviewed by the Corrupt Practices Investigation Bureau (CPIB).
CEO Foo Suan Sai and COO Han Juat Hoon will continue to perform their executive functions and responsibilities in full, said Multi-Chem’s audit and risk management committee.
The company’s nominating committee, with Foo recusing himself, said Foo and Han are founders of the group and are “intimately familiar with its operations and business”, necessitating their continued involvement in the group’s affairs to ensure continuity in operations.
In its Tuesday statement, the company said the two other senior staff assisting in the CPIB investigations are regional director Pui Boon Tiong and regional product manager Ker Jian Yan.
It added that Foo and Han are unable to disclose the nature and scope of the probe as the graft agency has prohibited them from discussing the investigations with any other person.
Pui told the Multi-Chem board that he has been instructed by CPIB not to disclose the details of the investigation. Ker, on the other hand, said his interview covered claims reimbursements relating to vendor personnel and that no travel restrictions were placed on him.
Both Foo and Han have surrendered their passports and posted bail. They have not been formally charged in court, said Multi-Chem.
“Foo Fang Yong, an executive director and general manager of the group, can assume an increased management role in the group to ensure continuity in management and business operations, if required,” said Multi-Chem.
Shares of Multi-Chem rose 22.1 per cent to S$2.93 as at noon on Wednesday. This followed a 21.8 per cent rise to close on Tuesday, before the news.
Last week, news of the probe wiped out S$200 million, or about half of the company’s market capitalisation. The counter fell as low as S$2.50 on Sep 18.
Beyond the individual investigations, none of the directors is aware of whether the company or any subsidiary is itself a subject of CPIB’s investigations, said Multi-Chem.
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