Crimson Logic's boss is accused of bribing former Carrefour man to win deal
26 October 2005
Christie Loh
[email protected]
The chief executive officer of a government-linked company was hauled to court for corruption charges yesterday..
CrimsonLogic's CEO Velusamy Mathivanan, 50, allegedly conspired with three other members of his top management to give $35,000 to a then Carrefour employee last year in order to secure an e-supply chain system contract worth $400,000..
He and the information technology firm's vice-president Tan Geok Hoon, 47, financial controller Thiagayson Sundaram Pillai, 52, and former legal counsel Alvin Lim Keng Hong, 41, face one count each under the Prevention of Corruption Act..
They allegedly agreed between April and July last year to bribe Carrefour's then-IT head, Matthias Tan Eng Haur, who in February was fined $25,000 for trying to obtain the kickback..
All four yesterday posted bail of $35,000 each and surrendered their passports. .
A pre-trial conference is scheduled for Nov 8. If convicted, each is liable to jail of up to five years and/or a fine capped at $100,000..
According to the Corrupt Practices Investigation Bureau, Matthias Tan asked for money under the table from Mr Pang Kang Ming, CrimsonLogic's business development manager. .
Mr Pang allegedly received approval from the senior management who supposedly agreed to pay Matthias Tan through a third-party, Actinium Corporation, if they won the Carrefour contract. Mr Pang could be a key witness if a trial takes place, say observers of the legal scene..
CrimsonLogic eventually clinched the Carrefour project. But no money was paid out, lawyer Wendell Wong said in court yesterday, in defence of his clients, Mathivanan, Pillai, and Tan Geok Hoon..
He later told reporters: "We continue to believe in our justice system. We will be patient and let due process take its course.".
Meanwhile, a CrimsonLogic spokeswoman told Today that the three accused employees have taken indefinite leave of absence from their duties..
One of the directors, Mr Leong Peng Kiong, is the acting CEO. The company has also taken measures to ensure that customer service will not be affected..
Mathivanan joined CrimsonLogic as its managing director in 1999 when it was known as Singapore Network Services, a company founded in 1988 by IE Singapore, Civil Aviation Authority of Singapore, PSA Corp, and Singapore Telecommunications..
Known for devising cost-saving IT solutions, CrimsonLogic counts as its customers several government agencies such as the Land Transport Authority, the Inland Revenue Authority, and the Supreme Court. Other customers include Sun Microsystems and Cisco Systems.