Multi-Chem says CEO, COO ‘suitable to continue’ as company directors
It adds that they will continue to perform their executive functions and responsibilities in full
[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). The news wiped out S$200 million, or about half of the company’s market capitalisation, in its immediate aftermath.
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 nature and scope of the investigation cannot be disclosed.
The two have also surrendered their passports and posted bail. They have not been formally charged in court, said Multi-Chem.
Its nominating committee, with Foo recusing himself, added that 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.
“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 were up 17.5 per cent or S$0.42 at S$2.82 as at 11.05 am on Wednesday. This followed a 21.8 per cent or S$0.43 rise to close at S$2.40 on Tuesday, before the news.
The counter fell as low as S$2.50 on Sep 18, after news of the CPIB investigations broke.
The two other senior employees, Pui Boon Tiong and Ker Jian Yan, are the regional director and regional product manager of the group, respectively.
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.
Beyond the individual investigations, none of the directors are aware of whether the company or any subsidiary is itself a subject of CPIB’s investigations, said Multi-Chem.
