• IP addresses are NOT logged in this forum so there's no point asking. Members are encouraged to install GOM or HOLA or TUNNELBEAR for an added layer of protection.

    The SEX forum is HERE so please stop asking.

Oxley, Hyflux & Noble Group's Decline - Regulators Refusing to Act

Johor plans to build several new water treatment plants in the next three to four years to better manage its resources and reduce reliance on buying treated water from Singapore, said its chief minister Osman Sapian. “I have also had a talk with Prime Minister Dr Mahathir about the matter and we are looking for ways not to be dependent on treated water from Singapore,” The Star quoted him as saying on Thursday (March 21).



PUB got very aggressive now. They just want to be answerable for the water issue and that's it. They don't dare to take responsibility for the fact that LNG was force-fed to hyflux (even when not required) and they blocked the two foreign investors who agreed to pay min $1.4billion for Tuaspring. (Now PUB pays zero dollars). Olivia blamed PUB for the wrong demand forecast provided during bidding process.

PUB is not stupid too. If i understand correctly, they just want the desalination component of Tuaspring and let Hyflux bled on the power component. Everything is confidential according to them so we don't have much information to interpret at this stage.

Worst of all, I ran into a minister at a dinner last night. I asked briefly if he could help investors about Hyflux. He pretended never hear, smiled and walked away.
which one ? pinky ?

That's the spirit!
A scandal will eventually be revealed if the restructuring don't go through. Therefore, if they don't think they can win, I will not be surprised that the April 5 voting will not take place. It makes more sense for them to come up with some new lies to drag time, or create a bailout.

So dear retail investors, if they continue with the April 5th restructuring voting:
  • Please invest your last 3% to uncover the scandal.
  • Please invest your last 3% if you want to hold Hyflux management and regulators responsible.
  • Please invest your last 3% if you want a chance to recovery your losses.
because if you agree to the restructuring, your losses are irreversible and never get justice done.
mind-boggling questions here as listed below:

1. Did PUB get its timing wrong to come out on March 5th, 2019 to serve the default notice?
Personally, I think that the serving of the 1-month notice on March 5th, 2019 seems to be throwing the gauntlet on the creditors as an ultimatum. It is too much of a coincidence that the end of the one month notice falls exactly on April 5th, 2019 which is the upcoming creditors restructuring vote.

While the notice served was to protect Singapore water supply and vital, PUB seems to have been caught off guard that the White Knight decided to pull out of the rescue deal. It quickly issued a statement on March 21st, 2019 that Salim Medco should not use PUB as an excuse to pull out of the Hyflux deal. I believe that the souring of the deal has very much negative political impact given that the general election may be coming up by the end of 2019 or 2020. There are a lot of angry Singaporeans who are going to be losing all their investments in Hyflux. It appears that the government is not keen to bail out Hylfux and is actually hoping that the Salim Medco rescue package will get through.

There is no doubt that whatever was its original intention, PUB had single-handedly smashed the only rescue deal on the table. Keeping my fingers crossed that either PUB or Salim Medco will reconsider their current stand and craft out something mutually acceptable for the restructuring to proceed.

2. Why did Hyflux not build in a safety mechanism in its contract with PUB during the tender for the building of plant and WPA?
I am not sure why the Hyflux team did not request for a minimum rate to cover their basic cost of building the plant and basic maintenance into the contract. My personal thoughts are this would have reduced the huge losses with running the plant. In my current industry, we will build in a minimum volume or rates in our tender for business contracts. Please see point 3 below on the aggressive water tariff rate submitted by Hyflux.

Alternatively, I think that Hyflux could have proposed a simple cost-plus model to the government agencies given that this is their first major venture into a long term concessionary service agreement. An open book for incurred cost and an agreed markup is definitely a safer option while building up invaluable experience and also financial data for future contracts. This is a similar model used in many commercial contracts.

3. If another operator- other than Hyflux- were to run Tuaspring, will it be profitable?
Hyflux may have been overzealous in its business strategy to derive more stable recurring income by entering into a long term concessionary agreement with an overly optimistic water tariff rates. It seems that in 2010, Hyflux bid for the water contract at a first-year price that was the lowest compared to any desalination plants in Singapore that had been or was being built.

Other operators may have bid using a much higher water tariff rate. PUB had made a statement that it cannot allow Hyflux to revise upwards the tariffs stipulated in the signed agreement given that this would not be fair for the other operators which have also tendered for the contract for the desalination plant during the request for quotation stage in 2010.

4. Do the Hyflux accountant preparing the financial statements and the auditor of Hyflux have access to the WPA? Or is it so confidential such that a lot of vital accounting entries for liabilities and asset valuation were not captured in its financial statement disclosure?
PUB made a statement that there were numerous breaches in the WPA with regard to the volume of daily treated water KPI of 70 million gallons since early 2017. It has also waived off compensation claim of 3 digit million amount. This is a staggering amount. Does this not constitute a legal provision way back in 2017 for breach of agreement?

In addition, I am shocked that PUB had publicly stated that the valuation of the desalination plant is actually negative based on the WPA. Surely, the WPA is a very critical piece of contract for Hyflux that spells out its contractual liabilities as well as Tuaspring valuation. The latest revelation by PUB put another huge dent in the valuation of Tuaspring which would have made the S$916Mil recently announced impairment by Hyflux grossly inadequate.

5. Will the Hyflux saga end with the vote on April 5th, 2019 or will there be lawsuits- David vs Goliath?
From the recent spate of revelations and dividends payout despite poor operating cash flow, it does seem that there are certain contentious areas with regard to the financial statement preparation as well as the contentious issue of fiduciary duties to shareholders that will be up for dispute. I do hope that things turn out well for all retail investors and holders of perpetual securities and all issues settled amicably.


I doubt she will be ever be arrested.
Logically, if she is arrested, she will expose the wrongdoings of PUB and NEA in defence of herself in courts.
OLIVIA LUM smoked us since last year because she supposed that her lies was not be exposed after she found a white knight to bail her out, not bail us.

Now I understand why from the very first townhall, Hyflux said that they are not seeking government help. Either there are underlying scandals with government agencies or risk exposing issues with the company accounts, that why Hyflux cannot seek a government bailout.

Looks like, only investors (Indonesians) who agreed to give her continued control and a fat pay-off like Noble's management, will be considered.
OLIVIA LUM smoked us since last year because she supposed that her lies was not be exposed after she found a white knight to bail her out, not bail us.

Now I understand why from the very first townhall, Hyflux said that they are not seeking government help. Either there are underlying scandals with government agencies or risk exposing issues with the company accounts, that why Hyflux cannot seek a government bailout.

Looks like, only investors (Indonesians) who agreed to give her continued control and a fat pay-off like Noble's management, will be considered.

Good points, probably explains by Olivia is so reluctant to seek government help and government have to be so harsh and rather retail investors be buried together.

It was a game of musical chair by Hyflux, using the retail bonds to repay the 4.8% and 5.75% perpetual bonds issued to accredited investors. Then music stopped in May 2018.

Do Singaporeans still believe in Singapore after all these? This is the biggest accounting fraud and largest corporate collapse in Singapore's financial history, affecting more than 50,000 investors. The asset valuations were rigged like Enron. Since 2017, there were operational issues and defaults in Tuaspring which went unreported. To make matters worse, the culprits dictate the resolution and local courts are more eager to showcase Singapore's ability to cram-down on investors, in bid to be a global restructuring hub.

Government also failed to regulate the power market resulting in massive oversupply and GLC held Hyflux hostage with ridiculous natural gas supply-contract. NEA and PUB went on to block foreign buyers who indicated interests to pay near $1.3bn valuation for Tuaspring, including a Chinese State-owned company, while allowing other Chinese companies to participate in other local power and water projects. . The approved GLC bidder simply low-balled on Tuaspring. To cover-up their mess, PUB had the cheek to offer zero dollars for Tuaspring's desalination facilities for zero dollars, citing massive underlying claims (despite not filing claims for April 5 restructuring).

There are about $1.2billion worth of savings being wiped out by Hyflux's retail bonds, preference shares and notes. The losses are far-reaching. Singapore will soon find fathers, mothers and seniors going bust or even steal for their families. These are people born here, faithfully served the country and invested in Singapore's water independence, only to be betrayed by the system and regulators sweeping these issues under the carpets.
Last edited:


Alfrescian (InfP)
Generous Asset
The authorities have been informed. I hope the rioters will be met with red trucks, truncheons and tasers.
I suppose you mean that the police will come support us in red trucks, truncheons and tasers.

Someone mentioned that the Police Force Co-op also suffered massive losses in Hyflux.
Cracks are showing in South-east Asia's credit markets as struggling companies in troubled industries seek to repair their balance sheets, according to Rajah & Tann Singapore LLP, which manages the largest network of corporate lawyers in the region.

The law firm, which has handled local units of Lehman Brothers Holdings and MF Global in their bankruptcy cases, said a slowing Chinese economy and more risk aversion among alternative capital providers will make it more challenging for some companies to meet maturing obligations. While credit markets have rallied this year amid more dovish steps by central banks, some weaker borrowers may still struggle to roll over debt.

Singapore's credit market bore the brunt of regional distress with at least 15 corporate defaults since 2014 as shipping and oilfield services groups stumbled, Noble Group headed for liquidation and as Hyflux fights for survival. In Indonesia, PT Bumi Resources pursued a debt reorganization after coal prices tanked, while builders, a broadcaster and seafood producer have also pushed out repayments on debt.