Dyna-Mac lodges police report against ex-staff of unit over $1m missing funds

SINGAPORE - Dyna-Mac Holdings has lodged a police report against an ex-employee of one of its subsidiaries for the suspected misappropriation of $1 million.

The offshore engineering firm said in a statement posted on the Singapore Exchange website yesterday that upon discovery of the misappropriation, the board and audit committee took immediate steps to review the internal controls of the affected department of the subsidiary, which it did not name.

They also conducted an investigation into whether there were any further incidents of misappropriation.

"Based on the outcome of the investigations conducted, no other incident of misappropriation has been discovered," the company said.

"At present, the subsidiary is working with its insurance firm on claiming compensation, while the board is also concurrently seeking advice on the available courses of action to recover the misappropriated funds."

Dyna-Mac added that if it is unable to fully or substantially recover the funds, the board expects that the missappropriation will have impact on the financial statements and performance of the subsidiary for the financial year ending Dec 31.

However, the firm does not expect it to have a significant impact on its normal operations.