SINGAPORE - Hotel Properties Limited (HPL) said on Tuesday that it had provided $24.6 million in advances to two jointly controlled entities in which its managing director Ong Beng Seng is deemed to have an interest.
Of this amount, $18.2 million was made to Great Western Enterprises, in which Mr Ong and board member David Fu have a 15 per cent beneficial interest each. Another $6.4 million was made to HPL Dolomites (UK), in which Mr Ong has a 20 per cent beneficial interest.
Mr Ong has been embroiled in a corruption probe since July, when he was arrested by the Corrupt Practices Investigation Bureau.
The amounts were revealed by HPL in a response to Singapore Exchange Regulation (SGX RegCo), which had asked it to give a breakdown of various transactions and their nature in the first fiscal half of the year ended June 30.
The query came after HPL posted a rise in “amount due from associates and jointly controlled entities” to $56.5 million as at June 30, from $49.1 million as at Dec 31, 2022. Along with this was a rise in its associates and jointly controlled entities’ non-current assets to $956.6 million as at June 30, from $912.7 million as at Dec 31, 2022.
Hitherto, the company had only attributed them to investments during the period, including equity contribution and advances of $25 million to associates and jointly controlled entities, in which certain directors are deemed to have interest.
HPL on Tuesday noted that its advances to other associates and jointly controlled entities amounted to $18.8 million, while exchange realignment on advances came up to $18.4 million. The company did not, however, give a further breakdown for these figures.
Nevertheless, HPL disclosed an $11.5 million loss attributed to the share of results and reserves of associates and jointly controlled entities for the first half of 2023.
In a clarification note on Wednesday, HPL reiterated that all joint venture (JV) partners, including Mr Ong, contributed in proportion to their equity. This was stated in a footnote in Tuesday’s disclosure.
Elaborating, HPL said the advances were in relation to JV projects, which needed additional funding.
HPL then disclosed that Great Western Enterprises needed additional funding for its project at Paddington Square in London. Given that Mr Ong and Mr Fu each hold a 15 per cent equity in the JV, they have had to fork out $3.9 million each, the company specified.
HPL also revealed that HPL Dolomites needed contributions to fund the acquisition of the remaining 10 per cent of the share capital of Alpina Dolomites SRL by HPL Dolomites (UK). Given Mr Ong’s 20 per cent equity, he has had to contribute $1.6 million, it stated.
Contributions from HPL for its 70 per cent share in Paddington Square and 80 per cent share in Alpina Dolomites amounted to $18.2 million and $6.4 million, respectively, adding to a total of $24.6 million.
Shares of HPL closed 0.6 per cent, or two cents, higher at $3.52 on Wednesday. THE BUSINESS TIMES
