Head of HR probed in white collar crime investigation

by Miklos Bolza24 Nov 2015
Two former executives from KLW Holdings are being investigated by the Commercial Affairs Department (CAD) for possible participation in white-collar crimes.
 
Ms Jaslin Gaw Kuan Ching, former financial controller and current head of operations and human resources was interviewed on Thursday (19 November) for possible offences under Section 199 of the Securities and Futures Act (SFA).
 
Section 199 prohibits anyone from making false or misleading statements which induce other parties to subscribe for securities, buy or sell securities, or result in the increase, decrease, maintaining or stabilisation of the market price of securities.
 
This can be a crime if the person does not care if the statement is misleading or false, or if they ought to have known while writing it up or signing.
 
Mr Lee Boon Teck, former managing director of KLW, is currently a consultant at the company. He is being investigated over possible offences under Section 203 of the SFA.
 
Section 203 refers to continuous disclosure in which all relevant parties are required to notify the security exchange of information on events or activities as they occur.
 
The act states that parties “shall not intentionally, recklessly or negligently fail to notify the securities exchange of such information as is required to be disclosed by the securities exchange under the listing rules or any other requirement of the securities exchange”.
 
The CAD asked Lee to surrender his travel documents and is presently requesting access to certain unspecified documents from both Lee and Gaw, KLW disclosed in a filing with the Singapore Exchange yesterday evening (23 November).
 
On Sunday, the Singapore Exchange questioned KLW over the continued employment of Lee and Gaw in their present roles. This came after the company’s auditor, PricewaterhouseCoopers, highlighted certain transactions relating to early-stage contracts which were made without the board’s prior approval.
 
PWC also said a number of payments made to Lee by KLW might have breached the Companies Act and Catalist rules.
 
In the report, Gaw was culpable for “signing cheques for the significant commitment fees and payments to Mr Lee without even knowing the reasons for such payments... This suggests a major breakdown of internal controls in respect of the investment and payment process of the company.”
 
In a statement to the Singapore Exchange on Sunday, KLW said that Lee’s role as consultant was “key to ensure the continuity of the door business” but that he would not be working in an executive role. Gaw would also be unable to sign cheques for KLW and its subsidiaries, the statement added.
 
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