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January 8, 2009 Thursday
Updated
Jan 8, 2009
More woes at Flyer
By Tessa Wong & K.C. Vijayan
The Singapore Flyer faces more problems now that legal action involving the company has been initiated. -- PHOTO: AGENCE FRANCE-PRESSE
THE problems at the Singapore Flyer appear to have taken a turn for the worse.

Yesterday, the attraction said a representative had made a police report alleging a breach of confidentiality over information given to The Straits Times.

The Flyer has been shut since Dec 23, when an electrical fire in the control room caused 173 people to be trapped in the cabins of the giant observation wheel for up to six hours.

The Straits Times yesterday reported the sudden departure this week of Flyer general manager Steven Yeo.

It was learnt yesterday that two legal actions involving the company have also been initiated.

Last November, board member Peter Purcell went to the High Court to seek the disclosure of documents related to various items of expenditure.

Last week, local company In-Audio sent a lawyer's letter demanding payment of $10.8 million, claiming it was for an aborted effort to set up a commentary system for Flyer visitors.

Mr Purcell wants the High Court to give his auditor access to the Flyer's financial records, and claims he is entitled to the information as a director of the company.

He was its managing director until he resigned last April, and currently sits on the board as the non-executive director and representative of O&P Management, one of the Flyer's stakeholders.

According to court documents filed through lawyer Philip Fong, Mr Purcell wants to check several items of expenditure.

Among them are expenses incurred to build a $250,000 jetty last July, and the alleged supply of more than 100,000 free tickets during the F1 Grand Prix season in September. At $30 per head, the free tickets - if issued - would have been worth at least $3 million.

A hearing on the action was held in the High Court last month, and the matter was adjourned to a date to be fixed soon.

Meanwhile, In-Audio sent its letter of demand last week through lawyer Salem Ibrahim for costs incurred and loss of profits over a deal to install a wireless broadcast system in the Flyer's cabins.

The firm said it was awarded the contract in January, only to have it terminated six months later.

Contacted yesterday, lawyers for the Singapore Flyer, comprising a team led by Mr Intekhab Khan from M&A Law Corporation, declined comment on either case.

The Straits Times reported yesterday that Flyer general manager Steven Yeo tendered his resignation on Monday and, although he gave six months' notice, he was told to go immediately.

He was the third general manager to leave over the last two years, the others being Mr David Beevers and Mr Kelven Tan.

Meanwhile, it was learnt yesterday that the New Year saw changes at the company's board as well.

Former Member of Parliament Chng Hee Kok, chairman of the Adval Brand Group which manages sales, marketing and ticketing distribution for the Flyer, told The Straits Times that he was appointed a director as of Jan 1.

He replaces Mr Joerg Leowejohann. The other members of the board are Mr Purcell, Mr Florian Bollen, and Mr Thomas Bone Winkel.

'We are still looking for a general manager,' said Mr Chng, when asked who would replace Mr Yeo.

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