YuuZoo files police report against former group financial controller

YuuZoo said it is  seeking legal advice on the statements made and actions taken by former group financial controller Mr Thai Youn Fatt following his termination.
YuuZoo said it is seeking legal advice on the statements made and actions taken by former group financial controller Mr Thai Youn Fatt following his termination.PHOTO: THE BUSINESS TIMES

SINGAPORE - An acrimonious dispute between mainboard-listed YuuZoo and its former group financial controller Thai Youn Fatt over reasons for his abrupt exit took on a new twist with the social commerce firm revealing that a police report has been made against him.

YuuZoo, in a filing with the Singapore Exchange on Tuesday morning (May 9), said it is also seeking legal advice on the statements made and actions taken by Mr Thai following his termination.

The company had announced that Mr Thai, 43, was terminated on May 3 for breach of his employment contract. A Business Times story on Saturday said before Mr Thai left, he had refused to sign off on the company's revenue recognition calculations.

Yuuzoo on Tuesday said a confirmation letter signed by Mr Thai confirmed that "he did not and does not have any issues, problems with or concerns in relation to the company's accounts, accounting records or accounting policies."

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The company added: "Mr Thai Youn Fatt has made false and potentially misleading statements which in the company's view, may lead shareholders and/or members of the public to erroneously infer or form the misconception that he left the company due to a disagreement over the company's revenue recognition policy.

"The company wishes to clarify that the actual reasons for Mr Thai's termination, which are cited in the termination letter, are 'numerous incidents of harassment of staff, threats made and abusive language used, insubordination and generally unacceptable behaviour in the workplace'".

YuuZoo said that, since his termination, Mr Thai has allegedly committed another "offence that has resulted in a police report being filed against him."

YuuZoo had pushed back its annual general meeting (AGM) and the publication of its annual report due to delays in an audit being carried out by RT. Singapore-listed companies have four months to conduct an AGM after their financial years end. YuuZoo, whose fiscal year ends on Dec 31, had missed its April 30 deadline and now expects to hold its AGM by May 30, 2017 instead.

In response to a query by SGX, YuuZoo said on Monday that its audit had been delayed as a result of "intense interaction" with RT.

The company said it adopted significantly more conservative accounting policies in 2016 than in 2015 to make them "more conservative, more prudent and more supportable" to avoid facing the same issues that led its previous auditor, Moore Stephens, to withhold its opinion on the company's FY15 results.

Mr Thai, who joined YuuZoo in January 2015, was previously financial controller at Lazada South East Asia.

gleong@sph.com.sg