Press Statement – Board and Management not absolved of accountability

Date: April 1, 2019

SIAS is aware that some Hyflux investors are of the view that if they were to vote “yes” for the restructuring, all investigations against the board and management of Hyflux would stop and they will never find out if, indeed, there were any wrongdoings and whether anyone is responsible for losing all their monies. SIAS is advised that this view is not correct. If there is any investigation, currently, it will continue and it need not put the company in liquidation for the investigation to take place. The scheme as it stands, only discharges the company and not the directors, the management, auditors nor the arrangers of the instruments sold to Hyflux investors. There is nothing to stop the creditors from calling for an investigation by the authorities or even by the new board of directors to look at what the old board did.

SIAS notes also that a number of Hyflux investors are of the erroneous view that should they vote against the restructuring on 5 April, so that the government may step in and take control of Hyflux. The government has made it clear that they are not going to bail out Hyflux and if they do step in, they will take away the plant at a zero value and not compensate everyone.

In the circumstance, SIAS would like to reiterate that the deal by Salim group is the only deal on the table and as such investors may not want to lose the hope of recovery of their investments should the shares return to trading and the share price go up, rather than allowing the company to go into liquidation. It would be a shame should liquidation take place to see thousands of Singaporean employees of Hyflux losing their jobs.

All the investors should turn up to vote.

FAQs will be published on SIAS’ and company’s websites to help investors understand clearly the Scheme of arrangement and its related issues.


David Gerald
Founder, President & CEO
Securities Investors Association (Singapore)