Raffles Education boss refutes claim of CAD probe as battle continues with tycoon Oei Hong Leong

SINGAPORE (THE BUSINESS TIMES) - Raffles Education Corp chairman and chief executive officer Chew Hua Seng has said that, to his knowledge, there is no investigation by the Singapore Police Force's Commercial Affairs Department (CAD) against him, his wife or his son.

This was in response to an extraordinary general meeting (EGM) requisition notice dated Aug 31, which included a proposed resolution suggesting the existence of a pending CAD complaint against the three individuals, Mr Chew said in a statement on Tuesday night (Sept 1).

The notice was sent by Raffles Education shareholders Oei Hong Leong, his firm Oei Hong Leong Art Museum, and Indian edtech entrepreneur Shantanu Prakash.

They asked that a special auditor be appointed to review the circumstances surrounding Raffles Education's joint venture with Mr Prakash's India-listed Educomp Solutions, amid concerns of wrongdoing, including alleged forgery, corruption and disclosure failures.

In addition, they said Mr Prakash had filed a complaint with the CAD relating to Mr Chew, his spouse Doris Chew, his son Chew Han Wei and other Raffles Education directors potentially having "colluded and conspired to fraudulently fabricate and forge documents towards extortion of Mr Prakash for land grabbing in India".

Mr Chew also noted in his statement on Tuesday that Mr Prakash and Educomp are being probed by the Serious Fraud Investigations Office, India's investigation agency handling major corporate fraud.

These investigations in India relate to allegations of fund diversion and land deals done at inflated prices by Educomp. Mr Prakash is the chairman and CEO of the edtech company.

India's Central Bureau of Investigation has registered a criminal case against Educomp, Mr Prakash, a guarantor and former directors for offences under the Prevention of Corruption Act, as well as for conspiracy, cheating and forgery, as they allegedly defrauded a consortium of banks of about 19.55 billion rupees (S$364.3 million), according to local media reports.

In Mr Chew's statement, he added that he found it "curious" Mr Oei aligned himself with Mr Prakash for the latest EGM requisition despite Raffles Education having won arbitration proceedings against Educomp and the Singapore-listed company having initiated a lawsuit against the Indian businessman and another party.

Before Monday's notice, Mr Oei had tried unsuccessfully to call for an EGM. He had been attempting to, among other things, oust Mr Chew as CEO and chairman of Raffles Education, as well as to appoint an auditor to review the circumstances surrounding all loans from Mr Chew and his handwritten "confidential agreement" signed with the CEO.

Mr Prakash joined Mr Oei in the latter's EGM requisition bid only in the latest notice received on Monday.

Shares of mainboard-listed private education provider Raffles Education gained 0.1 Singapore cent or 0.9 per cent to trade at 11.6 cents as at 9.24am on Wednesday.