CNA938 Rewind - Mind Your Money - To own or to lease? That is the question…
CNA938 Rewind
With COE and motor insurance costs on the rise, is it still worth buying a car — or does leasing make more sense? Cheryl Goh weighs the options with Desmond Chan, Editor of SG Car Mart.
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CNA
an hour ago
- CNA
Ex-managing director jailed for misappropriating S$7 million from his company to buy its shares
SINGAPORE: A managing director who misappropriated S$7 million (US$5.4 million) from his investment holding firm was jailed for three-and-a-half years on Tuesday (Jun 24). Lee Boon Teck, 58, used the sum stolen from Catalist-listed KLW Holdings to buy himself shares in the company, where he was also executive chairman. The firm is now known as HS Optimus Holdings. He pleaded guilty in May to one count each of criminal breach of trust and falsifying accounts. Ten similar charges were taken into consideration for sentencing. Lee admitted to carrying out the offences in 2014 with his co-accused Chan Ewe Teik, now known as Michael ET Chan. Chan's case is pending before the courts. Chan was the sole director and shareholder of Straitsworld Advisory, a consultancy firm. The duo met in 2010 or 2011, when Chan offered Lee his consultancy services after reading an article about a company in the KLW group facing business problems. Chan started introducing business opportunities to KLW through Lee. In 2013, Chan floated two projects in China involving the acquisition of a state-owned hotel in Zhangye, Gansu and the development of the surrounding land. The plan was for Straitsworld to acquire the assets for the projects with the help of a third company, White Group, then sell them to KLW, which would develop the projects. The three companies entered into an agreement with the Zhangye government in April 2014. Lee did not inform KLW's board of directors about the projects, despite knowing that any corporate decisions he made for the group required the board's approval. In May 2014, Lee arranged for a company in the KLW group to make a first payment of S$7 million in commitment fees to Straitsworld. In June 2014, he misappropriated a second payment of S$7 million in commitment fees from KLW to Straitsworld. Lee had agreed with Chan that he would use the money to buy KLW shares. However, by August or September 2014, discussions over the Zhangye projects had broken down. KLW's board expected a refund of the commitment fees. Lee met up with Chan on several occasions to recover the fees, which totalled S$14 million, but Chan told him that Straitsworld did not have sufficient funds. They agreed for Lee to repay S$7 million first on Chan's behalf, and Lee made the payment to KLW. Lee and Chan then agreed to redirect the remaining S$7 million owed to another potential property development project in which Straitsworld was involved. This redirection was approved by KLW's board. Chan also provided a guarantee that he would be personally liable for the repayment of the remaining S$7 million if the project fell through. When the project failed to materialise, KLW took legal action against Chan. He was only able to repay S$5.75 million of the S$7 million, and was made a bankrupt in 2018. The remaining sum of S$1.25 million has not been repaid. Lee also admitted to directing KLW's group financial controller and a finance and human resource manager to make false entries in the company's financial statements. This was to cover up the commitment fees paid to Straitsworld, a S$2.2 million commitment fee Lee made KLW pay for another potential property development project in Bali, and a S$1.95 million "personal loan" he took from KLW. These transactions, totalling S$18.15 million, were made without the knowledge or consent of KLW's board of directors, and Lee wanted to conceal them to prevent inquiries. In sentencing, District Judge Koo Zhi Xuan said that Lee abused his corporate authority by acting against the very company he was supposed to steward. Lee's actions deceived the listed company's board as well as the public at large, and deterrence was the primary consideration for his sentence, added the judge. The jail term also reflected the significant restitution that Lee had made, said Judge Koo. Lee could have been jailed for up to seven years, fined or received both penalties for criminal breach of trust. For instigating the falsification of accounts, he could have been jailed for up to 10 years, fined or both.
CNA
an hour ago
- CNA
Thai PM assures ruling coalition is stable as dispute with Cambodia escalates
BANGKOK: Thailand's embattled Prime Minister Paetongtarn Shinawatra said her coalition remained strong and a cabinet reshuffle had been settled, days after its second-largest coalition partner quit over a deepening border dispute with Cambodia. Last week, coalition partner Bhumjaithai withdrew its support for the government hours after an audio recording of a conversation between Paetongtarn and former Cambodian leader Hun Sen was leaked. The exit threw the government into turmoil as it scrambled to shore up coalition support for its slim majority amid a public backlash against the conversation, in which Paetongtarn appeared to kowtow before Hun Sen and criticise a senior Thai military commander. By Tuesday (Jun 24), Paetongtarn said her coalition was strong and that the cabinet reshuffle had been finalised, as her government approved US$3.5 billion worth of infrastructure projects aimed at boosting growth. "It's settled, I've spoken to all party leaders," she said, adding that the names were being vetted before they were sent to the king for approval. "Coalition parties have been fully supportive." Thailand's economy has lagged regional peers as it struggles under high household debt and borrowing costs, declining tourism arrivals and uncertainty around imminent US tariffs. Last year, the economy grew 2.5 per cent, with growth this year expected to be slightly above 1 per cent. A 38-year-old political novice and daughter of the divisive former Prime Minister Thaksin Shinawatra, Paetongtarn also dismissed speculation that she would take over the defence ministry portfolio, a closely watched position as the situation with Cambodia deteriorates. Late on Monday, the Thai military said it had closed border crossings into Cambodia to almost all travellers, including tourists and traders, citing security concerns as tensions simmer over a long-standing border dispute. The latest flare-up was triggered after a brief clash in May left one Cambodian soldier dead. Both governments have since announced measures designed to punish the other, including Cambodia's recent suspension of all Thai fuel and gas imports. Casinos in Cambodian capital Phnom Penh and along the borders with Thailand are a key part of the country's tourism industry and a draw for Thai visitors. Thailand will now restrict all vehicles, tourists and traders from crossing at all land border checkpoints in seven provinces bordering Cambodia, the military said in a statement late on Monday, citing security concerns. Exemptions for humanitarian reasons, including medical attention, students and other urgent matters were at the discretion of security units at checkpoints, it said. The military said the measures would also assist in a crackdown on illegal scam centres in Cambodia, flagged by Paetongtarn on Monday. Thailand would stop cross-border supplies of essentials, including electricity and internet connectivity, to areas in Cambodia where illicit operations are hosted, the prime minister told reporters.
CNA
2 hours ago
- CNA
Fewer disputes between homeowners and builders due to quality assessment scheme, says industry group
SINGAPORE: Legal disputes between homeowners and landed property builders have fallen by around 10 per cent since BuildTrust, a government-backed quality assessment scheme, was launched in April last year, according to the Micro Builders Association Singapore (MBAS). The scheme sets construction standards for areas including floors, walls and electrical fittings in landed homes and smaller-scale commercial properties undergoing building works. The standard was developed by MBAS, which represents building contractors, in consultation with the Building and Construction Authority (BCA). Under BuildTrust, contractors can get their projects independently assessed and receive a report as proof of their quality of work. About 15 per cent of MBAS' members have joined the scheme and the association hopes more will sign up as it looks to decrease the yearly average of disputes by half. Mr Kelvin Bing, the owner of Renaissance Planners and Designers, told CNA that the scheme helps to reduce conflicts and misunderstandings between owners and builders regarding defects. 'BuildTrust … encompasses professionals in Singapore … the assessors themselves used to be from (the) industry or the BCA,' he said. 'It (aligns) homeowners' expectations, for example, like tiles or marble finishes, (with) what the industry expects in terms of the gaps (or) the pointers between the tiles.' MORE DEFECT CHECKING COMPANIES Some defect checking firms said they have seen an increase of at least 10 per cent in the number of landed property owners seeking their services compared with two years ago. Mr Ng Kim Wah, director of Uncle Defect, said the demand has led to more such firms entering the industry. He added that regulations are long overdue as some defect checkers harbour vested interests, such as finding fault with negligible issues like patchy paint, and recommending solutions they can profit from. 'I feel there's a conflict of interest, because the more they check, the more defects they find … (and) the more they can sell their services,' said Mr Ng, who has been in the business for five years. Defect checkers, hired by some homeowners when their houses are being constructed or renovated, usually place a sticker to mark a possible construction fault, such as uneven wall plaster or plumbing problems. MBAS' chief assessor Chua Tai Kee noted that many of these stickers placed by unregulated third-party checkers may not mark real defects. 'If I'm a layman, I come to a house where the building checker (places) 1,000 stickers over the house, the whole world will think … is it a dangerous place to stay? You need to have a criteria,' he said. 'We will try our very best to educate the homeowners to let them know that these are not genuine defects … but something (they) can live with.' ACCREDITATION IS IMPORTANT Up to 40 per cent of MBAS' members have gotten into disputes with homeowners over the past three years, often due to cases of defects identified by unregulated third-party checkers. Such assessments often cause long-drawn disputes lasting up to a few months between contractors and homeowners, the association said. It added that in one such dispute, a contractor had to pay more than S$1 million (US$800,000) in legal fees after winning the case, adding that such cases prevent firms from taking up new projects as their time, resources and manpower are tied up in existing projects. Mr Ng said that adopting BuildTrust is important in advising contractors and homeowners if a problem needs fixing or if it is within the tolerance limit specified in the standards. '(Building a house) is considered (manual labour) … you need to expect that there must be some form of tolerance to the quality and workmanship,' he said. He added that anyone could register a business and claim to be a defect checking company, but accredited assessors such as Uncle Defect have more experience and expertise. The firm has carried out around 7,000 inspections, including more than 250 landed properties, to date without any disputes from contractors and homeowners regarding their assessment reports. One of its clients, homeowner Tai Yi Long, said he hired Mr Ng after encountering disputes regarding construction quality issues with a builder he engaged to renovate his family's three-storey property. Mr Ng identified more than 100 areas of concern but noted not all of them were necessarily defects. He flagged them for further observation at Mr Tai's request. 'When we write it as an observation, the owner and the contractor will know. In my experience, most of the time, the contractor will try to (fix) it, because it must be something that the homeowner is very particular (about),' said Mr Ng. Reports by defect checkers include videos of the areas of concern, making it easier for homeowners to point them out to contractors. 'If you have the capability, it's good that you check (for) yourself, but defect checkers (provide) a third-party perspective to help you,' said Mr Tai.
