Singapore: The police stated in a press release that the former CEO of Parknall International and two directors of coffee shop operator Kimly were charged in court on Friday (November 12) for disclosing violations.
Ong Eng Sing, the 46-year-old former CEO of Baijia International, was charged with three counts of failing to disclose his indirect interests in transactions with Baijia International.
Chia Cher Khiang and Lim Hee Kiat are both charged with one count of failing to notify the Singapore Exchange (SGX) of Kimly’s announcement of the acquisition of the beverage company Asian Story Corporation (ASC) on July 2, 2018.
The police stated that the acquisition was allegedly a stakeholder transaction and should have been disclosed in accordance with SGX’s Catalist rules, but this is not the case.
As Kimly’s executive chairman, Lim was further charged with one count of failing to disclose his indirect interest in the acquisition.
According to court documents, Lim has partial beneficial ownership of ASC.
Chia received bail of S$50,000 and Lim received bail of S$70,000.
Allegedly, Ong, a former director of Pokka International and Pokka Corporation (Singapore), has partial beneficial ownership of ASC.
Allegedly, when ASC entered into transactions with two Pokka entities, Ong failed to disclose its interests to Pokka International and Pokka Corporation on three occasions.
According to court documents, at some point in 2010, in the distribution agreement between Pokka International and ASC, he did not disclose his interest.
Allegedly, in the manufacturing agreement signed by the two companies on August 1, 2016, Ong also failed to disclose his interests.
Sometime around November to December 2017, the two companies reached an agreement on a distribution framework and ASC will supply Etika products to Pokka International. The latter will distribute products in Singapore’s general trade channels.
According to court documents, the former CEO allegedly failed to disclose that ASC was a company in which he had partial beneficial ownership.
If the acquisition is not disclosed as a stakeholder transaction, they may be sentenced to up to seven years in prison, a fine of up to S$250,000, or both.
If they fail to disclose their interests with the company, offenders may face up to 12 months in jail or a fine of up to S$5,000.
