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<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>GTC chief told to take leave
</TR><!-- headline one : end --><TR>Move comes amid allegations of improper payments at subsidiary </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Dennis Chan, Deputy Money Editor
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Mr Yang's indefinite leave of absence follows allegations of improper payments involving certain senior management.
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->THE board of Global Testing Corporation (GTC) has asked group president and chief executive Paul Yang to take an indefinite leave of absence over alleged improper payments.
His marching orders from the Taiwan-based, Singapore-listed semiconductor chips testing and assembly provider were the result of a red flag the board received on Sept22 that signalled possible wrongdoings involving certain senior management.
In a late-night announcement to the Singapore Exchange yesterday, GTC said the board had received correspondence containing allegations of improper payments at the company's subsidiary, GTC Taiwan, involving certain senior management at the subsidiary.
The day after the possible wrongdoings had been signalled, the audit committee discussed the allegations with external auditors Deloitte & Touche (DT), following which the auditors were roped in to assist in investigating the matter.
Preliminary findings from DT indicated possible breaches of laws from certain dubious transactions. Improper cash payments amounting to about NT$6million (S$268,000) were paid to eight GTC Taiwan employees this year as an incentive to retain their services.
One other improper payment alleged in the correspondence related to the payment of consultancy fees amounting to NT$2million.
Investigations are still ongoing and there are as yet no conclusive findings.
DT has also been tasked with looking into the accounting records of GTC Taiwan to determine if the improper payments are confined to these transactions.
Pending further investigations, Mr Yang has been asked to take an indefinite leave of absence from his positions. Executive director Paul Chien has been named acting chief executive.
Based on the preliminary findings, the board believes the alleged transactions should not have a material impact on the results of the group this year.
The board will make further announcements when appropriate. It will also make the necessary reports to the relevant authorities at the appropriate time.
GTC has had a dismal year, with its shares falling to six cents, down 65per cent so far this year. [email protected]
</TR><!-- headline one : end --><TR>Move comes amid allegations of improper payments at subsidiary </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Dennis Chan, Deputy Money Editor
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
Mr Yang's indefinite leave of absence follows allegations of improper payments involving certain senior management.
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->THE board of Global Testing Corporation (GTC) has asked group president and chief executive Paul Yang to take an indefinite leave of absence over alleged improper payments.
His marching orders from the Taiwan-based, Singapore-listed semiconductor chips testing and assembly provider were the result of a red flag the board received on Sept22 that signalled possible wrongdoings involving certain senior management.
In a late-night announcement to the Singapore Exchange yesterday, GTC said the board had received correspondence containing allegations of improper payments at the company's subsidiary, GTC Taiwan, involving certain senior management at the subsidiary.
The day after the possible wrongdoings had been signalled, the audit committee discussed the allegations with external auditors Deloitte & Touche (DT), following which the auditors were roped in to assist in investigating the matter.
Preliminary findings from DT indicated possible breaches of laws from certain dubious transactions. Improper cash payments amounting to about NT$6million (S$268,000) were paid to eight GTC Taiwan employees this year as an incentive to retain their services.
One other improper payment alleged in the correspondence related to the payment of consultancy fees amounting to NT$2million.
Investigations are still ongoing and there are as yet no conclusive findings.
DT has also been tasked with looking into the accounting records of GTC Taiwan to determine if the improper payments are confined to these transactions.
Pending further investigations, Mr Yang has been asked to take an indefinite leave of absence from his positions. Executive director Paul Chien has been named acting chief executive.
Based on the preliminary findings, the board believes the alleged transactions should not have a material impact on the results of the group this year.
The board will make further announcements when appropriate. It will also make the necessary reports to the relevant authorities at the appropriate time.
GTC has had a dismal year, with its shares falling to six cents, down 65per cent so far this year. [email protected]
