Singapore-listed Oriental seeks legal advice on damning special audit of governance at the firm

SINGAPORE - Oriental Group, a Singapore-listed company with operations in China, says it is seeking legal advice over possible legal breaches identified in just-released report of a special audit it commissioned.

The company listed on the Singapore Exchange's Catalist board for smaller companies, issued a statement to the SGX on Thursday (Dec 8).

"The board takes a serious view of the potential breaches of laws and/or Catalist rules highlighted by the special auditor as well as the findings of the independent reviewer, and is currently seeking legal advice on the appropriate courses of action in the best interests of the shareholders and the group," said the company.

"These include but are not limited to referring the matters disclosed in the special audit report as well as the independent reviewer's findings to the relevant authorities and taking appropriate actions against the former management, Mr Wu Dingrong, and other parties, if necessary."

Oriental produces and sells steel bars and billets in China as well as trade steel products overseas, mainly in South-east Asia.

In a 28-page executive summary of the report, published on the SGX website, the special auditor RSM Advisory said: "We have identified various issues which point towards the lack of effective internal controls, management's effective override of controls, and poor discharge of directors' duties , which raise grave concerns on the corporate governance of the company."