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NEL rapped by SGX
May 27, 2010
Tech firm drags its heels in releasing findings of probe into suspect financial transactions
By Fiona Chan
FAILURE to disclose important information promptly has earned a Singapore company and its directors a rare rap on the knuckles from the Singapore Exchange (SGX).
SGX said yesterday that tech firm NEL Group had dragged its heels in releasing the findings of a special report by auditor Ernst & Young, hired last year to probe a number of suspect transactions at the firm.
These allegedly involved 'round-tripping' deals with memory modules maker Advance Modules, which first surfaced in 2008 and were thought to fake sales and inflate the profits of the latter.
The failure of NEL's directors to comply with SGX's directive to release the report in a timely manner 'gives rise to questions of their demonstrating the qualities expected of directors of SGX-listed companies', the regulator said.
The individuals named by SGX are executive directors Lam Nai Man and Chieng Siong Kuong, and independent directors R. Kalaichelvan and Victor Lim Yong Poh.
The regulator advised companies listed here to consult it before 'they appoint any of these persons as a director or member of management'.
May 27, 2010
Tech firm drags its heels in releasing findings of probe into suspect financial transactions
By Fiona Chan
FAILURE to disclose important information promptly has earned a Singapore company and its directors a rare rap on the knuckles from the Singapore Exchange (SGX).
SGX said yesterday that tech firm NEL Group had dragged its heels in releasing the findings of a special report by auditor Ernst & Young, hired last year to probe a number of suspect transactions at the firm.
These allegedly involved 'round-tripping' deals with memory modules maker Advance Modules, which first surfaced in 2008 and were thought to fake sales and inflate the profits of the latter.
The failure of NEL's directors to comply with SGX's directive to release the report in a timely manner 'gives rise to questions of their demonstrating the qualities expected of directors of SGX-listed companies', the regulator said.
The individuals named by SGX are executive directors Lam Nai Man and Chieng Siong Kuong, and independent directors R. Kalaichelvan and Victor Lim Yong Poh.
The regulator advised companies listed here to consult it before 'they appoint any of these persons as a director or member of management'.
