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

hofmann

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Not just any fat cat sir. Even Nippon reporters also say you all greedy or gullible. So old loh cannot be so irresponsible. You all need to elucate yourselves before putting money into strangers' hands, otherwise even the PAP can't save you. :unsure:
Bloomberg thinks otherwise:

While retail investors may have been gullible or greedy, Mukherjee asserted that the blame does not lie entirely on them and that “Hyflux shouldn’t have been allowed anywhere near yield-starved Singapore retail investors in 2016.”


Mukherjee’s source S&P Global Ratings said that the numbers in 2016 “already suggested that the company’s capital structure was hardly sustainable, with a ratio of net debt to Ebitda above 10x in 2015 and negative Ebitda in 2014, driven by performance issues at the company’s Tuaspring desalination and power plant.”

S&P Global Rating’s assessment and Mukherjee’s views appear to match that of Mak Yuen Teen, an associate professor of accounting at the National University of Singapore.

In a recent interview with the national broadsheet, Mak said that ordinary shareholders and creditors could have chosen to get out of Hyflux earlier if the audit firm had given an adverse opinion. He added: “It is often the case here that auditors do not challenge assumptions enough.”

Shareholders and investors are also asking why Hyflux’s audit firm gave the organisation a clean bill of health in its annual reports over the last decade, instead of flagging up the risk that Hyflux would become embroiled in heavy debt.

KPMG has audited Hyflux since 2008. Hyflux slipped into the red for the first time in 2017 since it was listed in 2001. Two months later, it filed for bankruptcy protection.

The move shocked investors who had believed the company was healthy. Indeed, Hyflux’s financial statements before this point did not give cause for concern since it was prepared on the basis of an accounting method that assumes the company will remain solvent and operational indefinitely until proven otherwise.
 

mojito

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Bloomberg thinks otherwise:

While retail investors may have been gullible or greedy, Mukherjee asserted that the blame does not lie entirely on them and that “Hyflux shouldn’t have been allowed anywhere near yield-starved Singapore retail investors in 2016.”


Mukherjee’s source S&P Global Ratings said that the numbers in 2016 “already suggested that the company’s capital structure was hardly sustainable, with a ratio of net debt to Ebitda above 10x in 2015 and negative Ebitda in 2014, driven by performance issues at the company’s Tuaspring desalination and power plant.”

S&P Global Rating’s assessment and Mukherjee’s views appear to match that of Mak Yuen Teen, an associate professor of accounting at the National University of Singapore.

In a recent interview with the national broadsheet, Mak said that ordinary shareholders and creditors could have chosen to get out of Hyflux earlier if the audit firm had given an adverse opinion. He added: “It is often the case here that auditors do not challenge assumptions enough.”

Shareholders and investors are also asking why Hyflux’s audit firm gave the organisation a clean bill of health in its annual reports over the last decade, instead of flagging up the risk that Hyflux would become embroiled in heavy debt.

KPMG has audited Hyflux since 2008. Hyflux slipped into the red for the first time in 2017 since it was listed in 2001. Two months later, it filed for bankruptcy protection.

The move shocked investors who had believed the company was healthy. Indeed, Hyflux’s financial statements before this point did not give cause for concern since it was prepared on the basis of an accounting method that assumes the company will remain solvent and operational indefinitely until proven otherwise.
Bloombird Andy agree with me what. Greedy and gullible that why got cheat. All along I say it is regulator got conflict of interest lor. Thanks to many good years from the PAP, many blur blur retirees by default become accredited investors. Where else in the world rich got so stupid? For that, we have to thank the PAP. Maybe raise the net worth threshold for the accredited investor so the hyenas cannot abuse them but some people sure not happy say SG nanny state. :rolleyes:
 

hofmann

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Bloombird Andy agree with me what. Greedy and gullible that why got cheat. All along I say it is regulator got conflict of interest lor. Thanks to many good years from the PAP, many blur blur retirees by default become accredited investors. Where else in the world rich got so stupid? For that, we have to thank the PAP. Maybe raise the net worth threshold for the accredited investor so the hyenas cannot abuse them but some people sure not happy say SG nanny state. :rolleyes:
After the Enron debacle, the US responded with the Sarbanes Oxley Act which we have refused to adopt citing compliance cost.

Well the compliance cost savings for the issuers has resulted in 34,000 retails investors being screwed over. They were not the first nor will they be the last.

If this isn't a call for action, I don't know what else is.
 

mojito

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After the Enron debacle, the US responded with the Sarbanes Oxley Act which we have refused to adopt citing compliance cost.

Well the compliance cost savings for the issuers has resulted in 34,000 retails investors being screwed over. They were not the first nor will they be the last.

If this isn't a call for action, I don't know what else is.
They are just lazy lah. Not just securities regulation. Highest pay world class most expensive bureaucrats don't want to set rules is what you tell me? Unless it involves collecting money or delaying payments like your own pension they are clearly not interested.
 
After the Enron debacle, the US responded with the Sarbanes Oxley Act which we have refused to adopt citing compliance cost.

Well the compliance cost savings for the issuers has resulted in 34,000 retails investors being screwed over. They were not the first nor will they be the last.

If this isn't a call for action, I don't know what else is.
Agree. Covering up this scandal is a crime. At this point, we should realize that something has gone very wrong in the way this country is run.

Now that retirees, civil servants and their families are also among the Noble & Hyflux casualties Let's hope we will see a political shake-up in the next elections.
 

Leongsam

Administrator
Admin
Loyal
Agree. Covering up this scandal is a crime. At this point, we should realize that something has gone very wrong in the way this country is run.

Now that retirees, civil servants and their families are also among the Noble & Hyflux casualties Let's hope we will see a political shake-up in the next elections.

Judging from the fact that so few turned up at speakers' corner regarding this issue I doubt very much it will make a scrap of difference.

150/34000 is a very small percentage.
 
Judging from the fact that so few turned up at speakers' corner regarding this issue I doubt very much it will make a scrap of difference.

150/34000 is a very small percentage.
I attended. Nikkei and Bloomberg can ascertain that we have about 500-1000. I agree the turnout is disappointing.

However, their voting was cancelled because the proxy forms submitted were overwhelmingly NO.
If the voting was not cancelled, we could see a massive turnout to vote NO, despite SIAS and PUB's plead to vote YES.

Thank you for our forum for giving us a chance to air our grievance here. We will remember your kindness.
 

Leongsam

Administrator
Admin
Loyal
I attended. Nikkei and Bloomberg can ascertain that we have about 500-1000. I agree the turnout is disappointing.

However, their voting was cancelled because the proxy forms submitted were overwhelmingly NO.
If the voting was not cancelled, we could see a massive turnout to vote NO, despite SIAS and PUB's plead to vote YES.

Thank you for our forum for giving us a chance to air our grievance here. We will remember your kindness.
1000 would fill the whole of Hong Lim Green. Any pictures?
 
In a joint statement, the Monetary Authority of Singapore, the Accounting and Corporate Regulatory Authority and the Singapore Exchange Regulation said they “are currently reviewing Hyflux-related disclosure issues, as well as compliance with accounting and auditing standards.”

The review is “to determine if there have been breaches of listing rules and/or the relevant laws and regulations,” they said, without giving details or saying what had prompted the review.

https://in.reuters.com/article/hyfl...ew-hyfluxs-disclosure-standards-idINL3N21Y2TV

Hope the scammer and board of Directors will be jailed very soon.
 

Soul

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Loyal
PAP must be so complacent now. SPH feeds them with fake optimism until they have no awareness of the ground sentiments.
Like Emperor's New Clothes.

Maybe we will see a regime change.
 
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