Two key KLW figures under CAD probe

Mr Lee Boon Teck, in a picture taken in 1999, is the former managing director and now a consultant of troubled doormaker KLW Holdings. The company says he will not have an executive role and will not have any authority to represent KLW in an official
Mr Lee Boon Teck, in a picture taken in 1999, is the former managing director and now a consultant of troubled doormaker KLW Holdings. The company says he will not have an executive role and will not have any authority to represent KLW in an official capacity.BT FILE PHOTO

Both were interviewed by white-collar crimebuster for possible offences under Securities and Futures Act

Two former key executives at troubled doormaker KLW Holdings are being investigated by the white-collar crimebuster for possible breaches of corporate law.

Mr Lee Boon Teck, the former managing director, now a consultant of the company, was interviewed by the Commercial Affairs Department (CAD) last Thursday and Friday over possible offences under Section 203 of the Securities and Futures Act (SFA), KLW said in a filing with the Singapore Exchange last evening.

CAD has asked Mr Lee to surrender all travel documents and is seeking access to certain other documents, it added.

Last Thursday, Ms Jaslin Gaw Kuan Ching, currently head of operations and human resource of KLW, was interviewed by the CAD over possible offences under Section 199 of the SFA and released on bail. Ms Gaw was formerly financial controller of the company.

CAD also requested access to certain documents from Ms Gaw for the investigation. KLW said the CAD has not disclosed any further details on its investigations.

The business and operations of the group are not affected by the investigations and will continue as normal, it added. "The company has extended and will continue to extend its fullest cooperation to the CAD in its investigations and will make further announcements as and when there are further significant developments concerning this matter," KLW said.

On Sunday, KLW issued a statement in response to questions from the Singapore Exchange over its continued employment of the duo in their new capacities. This was after KLW's special auditor PricewaterhouseCoopers earlier this month questioned some transactions undertaken by Mr Lee relating to early-stage contracts, which he entered into without the board's approval.

The report also said that several payments made by KLW to Mr Lee may have involved a breach of the Companies Act and Catalist rules.

Ms Gaw was also faulted for "signing cheques for the significant commitment fees and payments to Mr Lee without even knowing the reasons for such payments... This suggests a major breakdown of internal controls in respect of the investment and payment process of the company," the report said.

KLW said on Sunday that Mr Lee's appointment as consultant is "key to ensure the continuity of the door business... (he) will not have an executive role and will not have any authority to represent KLW in an official capacity."

Ms Gaw will also no longer be able to sign cheques for KLW and its subsidiaries, it added. However, KLW did not disclose the CAD investigation until yesterday.

A version of this article appeared in the print edition of The Straits Times on November 24, 2015, with the headline 'Two key KLW figures under CAD probe'. Print Edition | Subscribe