SINGAPORE - Eight former directors of Swiber were charged under the Securities and Futures Act (SFA), relating to breaches in 2014 by the now insolvent and delisted offshore and marine group.
The charges came after a joint investigation by the Commercial Affairs Department of the Singapore Police Force and the Monetary Authority of Singapore, said the police on Friday.
In December 2014, Swiber announced that it had secured a US$710 million project, which was allegedly false.
At that time, the group’s wholly owned subsidiary, Swiber Offshore Construction, had only signed a letter of intent that authorised an expenditure of up to US$2 million on the project.
Five directors were charged with consenting to Swiber’s false statement. They face one additional charge for conniving in Swiber’s reckless non-disclosure.
They are the group’s founder and then executive chairman Raymond Kim Goh; then executive director and chief executive Francis Wong Chin Sing; then executive director and chief financial officer Leonard Tay Gim Sin; then executive director Nitish Gupta; and then non-executive director Yeo Chee Neng.
Three other former directors – Jean Pers, Oon Thian Seng and Chia Fook Eng – were charged with neglect.
The “reckless non-disclosure” was related to Swiber’s alleged reckless failure under the mainboard listing rules to disclose that Brunei Shell Petroleum had in October 2014 served Swiber Offshore Construction a notice of termination for a water-flooding project.
In addition to the two charges relating to the false statement when Yeo was a non-executive director, he faces three charges for insider trading of Swiber debentures in 2016, and four charges for failing to disclose his interest changes in the securities between 2014 and 2016.
Yeo served as the group’s CEO and president from June 20 to Sept 2 in 2016.
If convicted, on each charge under sections 199, 203 and 218 of the SFA, offenders face a jail term of up to seven years, a fine not exceeding $250,000, or both.
If convicted, on each charge under section 133 of the SFA, offenders face a jail term of up to two years, a fine not exceeding $250,000, or both.
Swiber was delisted on June 23, 2023, after listing for about 17 years.
It was put under judicial management in 2016, along with Swiber Offshore Construction, and had undergone compulsory liquidation last November after insolvency. THE BUSINESS TIMES
