The authorities should look into how much the Hyflux board knew or ought to have known when it approved the issue of the final tranche of unsecured retail bonds (Hyflux chief 'deeply saddened' by investors' pain, Feb 16).
By the time the last tranche of unsecured retail bonds was issued, what was the financial picture of the company presented to the board?
On the basis of that picture, could the board be said to have acted reasonably and responsibly in approving the issue?
Did any member of the board raise concern about issuing the bonds to the general public given the company's financial situation?
If so, who in the board gave the assurances that persuaded the board to approve the issue, and what were those assurances?
Given that the tranche was open not just to sophisticated investors, but also ordinary members of the public and old folk with hard-earned retirement savings, there is a need to thoroughly investigate how the Hyflux board came to approve the issue.
Cheng Shoong Tat