Date: December 4, 2009
The disclosure by the Independent Directors pursuant to the PricewaterhouseCoopers Report on the Company’s financial affairs is worrying to minority shareholders. The disclosure of phantom transactions and questionable conduct by Executive Directors in China bordering on criminality must be dealt with firmly and decisively.
SIAS calls on the authorities in China to immediately demonstrate its willingness to conduct a thorough investigation into this Company’s affairs in China and bring any wrong doing under the weight of the law, if the confidence of Singapore investors in Chinese companies is to be restored.
The Independent Directors must, now, together with the shareholders take legal action to appoint a new board to ensure that the Company’s remaining assests, if any, are fully protected. We will approach the Chinese Embassy in Singapore to relay our concerns to the Chinese authorities.
We are confident that the Singapore authorities will do the needful.
| David Gerald President & CEO Securities Investors Association (Singapore) |
