CPIB hauls Multi-Chem CEO, COO in for questioning; stock hits circuit breaker
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Multi-Chem shares plummeted right at market open, plunging more than 40 per cent in morning trade, or S$1.84 to S$2.50.
PHOTO: LIANHE ZAOBAO
Deon Loke
- Multi-Chem's CEO, COO, and two senior employees were questioned by Singapore's CPIB in an anti-corruption probe, with the CEO and COO surrendering passports and mobile phones.
- Multi-Chem shares dropped over 40% at market open, triggering SGX's circuit breaker due to sudden volatility.
- CPIB seized company financial documents and vendor agreements during the investigation, while the audit committee seeks more information on the probe's details and progress.
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SINGAPORE – Mainboard-listed IT distribution company Multi-Chem announced on Sep 17 that its chief executive, chief operating officer and two senior employees have been interviewed by the Corrupt Practices Investigation Bureau (CPIB).
Multi-Chem shares plummeted right at market open, plunging more than 40 per cent in morning trade, or $1.84, to hit a low of $2.50 at 9.31am.
The sharp drop triggered the Singapore Exchange’s circuit-breaker mechanism, which enforces a 10 per cent price band and a five-minute cooling-off period when a security experiences sudden volatility.
In a regulatory filing to SGX, the company’s audit and risk management committee (ARMC) disclosed that CEO Foo Suan Sai and chief operating officer Han Juat Hoon had been interviewed by the anti-graft agency.
Both executive directors were asked to provide bail and hand over their passports and mobile phones to CPIB.
The company’s ARMC, comprising the group’s independent directors, was informed of the situation by Han.
In its statement on the development, the committee clarified that it is not directly privy to the ongoing matter before CPIB.
Two senior sales employees of the group were also questioned by CPIB.
The committee said it does not currently know if these employees were similarly required to surrender their passports or mobile devices.
As part of the ongoing probe, CPIB officers visited the group’s premises and seized several documents.
These include certain financial accounts of the group dating from an earlier year to the present, employee claim documents relating to group personnel and an individual from a vendor, and an agreement relating to the same vendor.
“The ARMC is currently seeking further information from the executive directors relating to the interviews, substance of the investigations, and other actions taken by the CPIB,” said committee member Steven Chong on behalf of ARMC. THE BUSINESS TIMES