SINGAPORE - The executive chairman and chief executive of KS Energy and his son, an executive director at the offshore and marine company, are being investigated by Singapore's white collar crimebuster.
KS Energy said in a stock exchange filing last Saturday that it had been informed by M. Kris Taenar Wiluan and his son Mr Richard James Wiluan that they had been been interviewed by the Commercial Affairs Department (CAD) in its investigations into a potential contravention of Section 197, of the Securities and Futures Act.
The older man was released after his interview and posted police bail while the younger man was released without requiring bail.
"Both have informed the board that they have and will continue to cooperate fully in the investigations, including granting access to all their electronic data, IT equipment and data storage devices from January 2015," said KS Energy, adding that it has not been approached by the CAD regarding its investigations and that the CAD has not revealed any details to the board.
Both men said they will keep the board updated on the progress of the investigations and the company will make further announcements as and when necessary.
Meanwhile, the business operations of the group are continuing as usual, said KS Energy.
Earlier this month, the company disclosed that its independent auditors from KPMG had flagged "material uncertainty related to going concern" in relation to its 2016 financial statements.
The auditors noted three going concern issues.
First, the group made a full-year net loss of S$126.3 million and the group and company's current liabilities exceed current assets by S$88.20 million and S$99.45 million, respectively.
Second, the group's convertible bonds of S$61.6 million and short-term borrowings from a shareholder of S$13.3 million are subject to restructuring.
Third, the group has a capital commitment of S$244.8 million for an asset under construction that is due for delivery on Dec 31.