Jason Holdings ex-CEO being investigated by CAD, has passport impounded

Jason Sim, founder and CEO of Jason Parquet Holdings Limited, at his warehouse facility in Tampines in November 2014.
Jason Sim, founder and CEO of Jason Parquet Holdings Limited, at his warehouse facility in Tampines in November 2014.PHOTO: ST FILE

SINGAPORE - The Commercial Affairs Department (CAD) is investigating Jason Holdings director Jason Sim Chon Ang and the company's wholly-owned subsidiary, Jason Parquet Specialist (Singapore), for a possible offence under the penal code, the company announced late on Thursday (Aug 4).

Mr Sim was interviewed by the CAD on Aug 1, and ordered to produce company documents and information for the period 2008 to 2016. He was ordered to surrender his travel documents on Aug 2.

Shares of Catalist-listed Jason Holdings, a timber flooring specialist, remain suspended.

An Ernst & Young (EY) report in May highlighted potential breaches of fiduciary duties in the management and administration of Jason Parquet. These included the unit having paid the hire purchase instalments of a car registered in the name of the wife of Jason Sim, who was then Jason Holdings' chief executive officer. In addition, when the car was reported stolen in October 2014, the balance of the insurance proceeds were not returned to the subsidiary after repayment of the outstanding loan.

As a result of the report, a special committee suspended Mr Sim as CEO. Mr Sim's brother-in-law, Mr New Sze Wei, who tendered his resignation on May 1, was also suspended as group operations director.

EYs report also said that Jason Parquet had made certain deposits and prepayments to other parties using trust receipts obtained from banks without supporting underlying goods. The firm had also obtained accounts receivable financing from different banks using progress claims with identical work descriptions and values at different times.

There were also discrepancies between the physical quantity of inventories and the records in the accounting system, and inadequate documentation to support the writing-off of inventories, while full physical stock counts were not conducted in recent years.