Independent probe finds ‘no impropriety’ as C-suite drama erupts at Hong Lai Huat

[SINGAPORE] Mainboard-listed real estate developer Hong Lai Huat Group has pulled the curtain back on the sudden departure of its chief financial officer Lai Seng Fatt, who resigned from the company on Feb 3, following “an office dispute”.

Lai, 50, was serving his three-month probationary period with the company at the time of his resignation.

In connection with the dispute, Lai had raised certain allegations against Hong Lai Huat’s newly appointed chief strategy officer and executive director, Ong Jia Jing.

Ong Jia Jing, 31, is the son of Ong Bee Huat, Hong Lai Huat’s executive deputy chairman and group chief executive officer.

He is also the brother of executive director Ong Jia Min and the nephew of key management executive Ong Bee Wah.

An independent probe conducted by Nineyards Chambers concluded that there was no financial, regulatory, or corporate impropriety involved in Lai’s cessation as chief financial officer.

​Instead, the incident boiled down to what the legal advisers termed a “one-off isolated personal dispute”.

​The investigation revealed that the corporate saga had unfolded over a week in January.

On the morning of Jan 20, a “heated verbal dispute” erupted between Lai and Ong Jia Jing. The two held a follow-up meeting that same afternoon, where they, “for all intents and purposes, made peace over the incident”.

​Following this, they “continued to work together professionally without incident”, Nineyards Chambers wrote in a summary report.

A week later, on Jan 27, the peace between the two was shattered when Lai sent an e-mail to Ong Bee Huat and Hong Lai Huat’s human resources (HR) department, complaining that he had not received “any remedy” or “formal apology” from the company.

The next day, Lai sent to Ong Bee Huat his resignation letter, in which he said that it was “no longer possible” for him to carry out his duties properly.

The investigators noted that the incident on Jan 20 “was, at most, a contributing factor” to Lai’s exit.

It added that other “work-related incidents” – that did not involve Ong Jia Jing – took place between Jan 20 and 27, which “most likely” pushed Lai to resign.

Nineyards Chambers ruled out any claims of constructive dismissal, adding that Lai had resigned voluntarily.

It further noted that the company’s former HR manager and former financial controller did not respond to requests for an interview.

Lai himself declined to attend a follow-up interview to discuss the afternoon peacemaking session with Ong Jia Jing.

Hong Lai Huat said on Tuesday (Mar 24) that its nominating committee, having reviewed the findings, “unanimously agrees” that the dispute does not affect Ong Jia Jing’s ability to continue serving as chief strategy officer and executive director.

The company also said that its board will “take steps to prevent a recurrence” of such incidents.

“Ong Jia Jing will take executive counselling sessions on how to control his temperament and how to manage disputes in future,” it added.

Nineyards Chambers recommended that the company “implement policies in relation to resolving interpersonal disputes between employees and handling of grievances, if not already in place”.

Shares of Hong Lai Huat rose 2.2 per cent or S$0.002 to S$0.095 on Wednesday.