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AsiaOne
a day ago
- Business
- AsiaOne
Criminal trial of Hyflux founder Olivia Lum and 5 others starts on Aug 11, Singapore News
SINGAPORE — The long-awaited criminal trial of Hyflux founder and former chief executive Olivia Lum Ooi Lin, former chief financial officer (CFO) Cho Wee Peng and several former board members will start on Aug 11, nearly three years after they were charged with violations of the Securities and Futures Act. Already, one of the defendants has thrown in the towel. In total, seven individuals have been charged over Hyflux's intentional failure to disclose information relating to the Tuaspring Integrated Water and Power Project, among other things. But six are contesting their charges in a 56-day trial scheduled to run from Aug 11 to Feb 5, 2026. The charges were filed more than a year after the failed water treatment firm was approved for winding up in 2021, leaving about 34,000 investors of perpetual securities and preference shares, who had sunk in a combined $900 million, with nothing. On Aug 11, the prosecution will proceed on 11 charges against the six defendants. These include two of the six charges Lum faces. The remaining four charges against Lum are stood down. The two charges proceeding against Lum relate to her consenting to Hyflux omitting information relating to Tuaspring, when disclosure was required under Singapore Exchange (SGX) listing rules. This information was necessary to avoid the establishment of a false market in Hyflux's securities, the charge sheet said. According to the charge, she consented to intentionally failing to notify SGX that the Tuaspring project was Hyflux's expansion into a new business of selling electricity, and that the plant's profitability was contingent on electricity sales revenue, which was projected to make up a significant proportion of its overall revenue. This had implications for Tuaspring's resulting exposure to market risks arising from the volatility of electricity prices. If convicted of this charge, Lum, 64, faces up to seven years' jail, a fine of up to $250,000, or both. She was also charged over Hyflux's omission to disclose the information about Tuaspring in the offer information statement issued for the offer of $200 million, 6 per cent preference shares on April 13, 2011. If convicted of this charge, she faces up to two years' jail, a maximum fine of $150,000, or both. Cho, 56, who was also Hyflux's group executive vice-president, was charged with conniving in Hyflux's omission to disclose the information about Tuaspring. The former Hyflux independent directors (IDs) also charged with disclosure-related offences are: Teo Kiang Kok, 69; Christopher Murugasu, 66; Gay Chee Cheong, 69; and Lee Joo Hai, 69. The four men were charged with two counts each - one for neglect relating to Hyflux's failure to disclose information relating to Tuaspring as required, and another for omitting material information in the 2011 offer information statement. But one other independent director, Rajsekar Kuppuswami Mitta, on Aug 7 pleaded guilty to a charge of neglect in relation to an announcement by Hyflux to the SGX on March 7, 2011. The announcement stated that Hyflux had been named the "preferred bidder" by national water agency PUB to build and operate Singapore's second and largest seawater desalination plant in Tuas for a concession period of 25 years. It also mentioned that a power plant would be built to supply electricity to the desalination plant, and that excess power would be sold to the power grid. But it did not disclose that Hyflux was going into the business of selling electricity for the first time. A second charge, for non-disclosure related to Hyflux's offer on April 13, 2011, was taken into consideration during sentencing. Rajsekar, a 68-year-old Australian citizen and Singapore permanent resident, was fined $90,000 over the company's failure to disclose information relating to the Tuaspring project in 2011 as required. He was also barred from acting as a company director for five years. Corporate governance advocate Mak Yuen Teen said that Rajsekar's sentence "may be a combination of lower culpability and his guilty plea" before trial. In seeking the $90,000 fine for Rajsekar, Deputy Public Prosecutor Kevin Yong noted that the harm caused was high while Rajsekar's culpability was low. The prescribed sentence is a fine of up to $250,000, a jail term of up to seven years, or both. Corporate finance lawyer Robson Lee, a partner at Kennedys Law, noted: "The fact that one independent director pleaded guilty before the start of trial does not affect the legal positions of the other IDs or executive director and CFO to defend the charges against each of them." The charges against the seven followed a joint probe in June 2020 by the Commercial Affairs Department, the Monetary Authority of Singapore and the Accounting and Corporate Regulatory Authority. The probe was initiated after a review of Hyflux's compliance with accounting and auditing standards, as well as disclosure rules. It looked at whether there were lapses in Hyflux's disclosures concerning the Tuaspring project, and non-compliance with accounting standards between 2011 and 2018. [[nid:719522]] This article was first published in The Straits Times . Permission required for reproduction.
Singapore Law Watch
a day ago
- Business
- Singapore Law Watch
Criminal trial of Hyflux founder Olivia Lum and five others starts on Aug 11
Criminal trial of Hyflux founder Olivia Lum and five others starts on Aug 11 Source: Straits Times Article Date: 11 Aug 2025 Author: Grace Leong Olivia Lum faces charges for omitting key Tuaspring project details; the project's profitability depended on electricity sales, a new business for Hyflux. Six defendants, including Lum and former directors, contest charges related to disclosure failures; the trial is scheduled for 56 days. The long-awaited criminal trial of Hyflux founder and former chief executive Olivia Lum Ooi Lin, former chief financial officer (CFO) Cho Wee Peng and several former board members will start on Aug 11, nearly three years after they were charged with violations of the Securities and Futures Act. Already, one of the defendants has thrown in the towel. In total, seven individuals have been charged over Hyflux's intentional failure to disclose information relating to the Tuaspring Integrated Water and Power Project, among other things. But six are contesting their charges in a 56-day trial scheduled to run from Aug 11 to Feb 5, 2026. The charges were filed more than a year after the failed water treatment firm was approved for winding up in 2021, leaving about 34,000 investors of perpetual securities and preference shares, who had sunk in a combined $900 million, with nothing. On Aug 11, the prosecution will proceed on 11 charges against the six defendants. These include two of the six charges Lum faces. The remaining four charges against Lum are stood down. The two charges proceeding against Lum relate to her consenting to Hyflux omitting information relating to Tuaspring, when disclosure was required under Singapore Exchange (SGX) listing rules. This information was necessary to avoid the establishment of a false market in Hyflux's securities, the charge sheet said. According to the charge, she consented to intentionally failing to notify SGX that the Tuaspring project was Hyflux's expansion into a new business of selling electricity, and that the plant's profitability was contingent on electricity sales revenue, which was projected to make up a significant proportion of its overall revenue. This had implications for Tuaspring's resulting exposure to market risks arising from the volatility of electricity prices. If convicted of this charge, Lum, 64, faces up to seven years' jail, a fine of up to $250,000, or both. She was also charged over Hyflux's omission to disclose the information about Tuaspring in the offer information statement issued for the offer of $200 million, 6 per cent preference shares on April 13, 2011. If convicted of this charge, she faces up to two years' jail, a maximum fine of $150,000, or both. Cho, 56, who was also Hyflux's group executive vice-president, was charged with conniving in Hyflux's omission to disclose the information about Tuaspring. The former Hyflux independent directors (IDs) also charged with disclosure-related offences are: Teo Kiang Kok, 69; Christopher Murugasu, 66; Gay Chee Cheong, 69; and Lee Joo Hai, 69. The four men were charged with two counts each – one for neglect relating to Hyflux's failure to disclose information relating to Tuaspring as required, and another for omitting material information in the 2011 offer information statement. But one other independent director, Rajsekar Kuppuswami Mitta, on Aug 7 pleaded guilty to a charge of neglect in relation to an announcement by Hyflux to the SGX on March 7, 2011. The announcement stated that Hyflux had been named the 'preferred bidder' by national water agency PUB to build and operate Singapore's second and largest seawater desalination plant in Tuas for a concession period of 25 years. It also mentioned that a power plant would be built to supply electricity to the desalination plant, and that excess power would be sold to the power grid. But it did not disclose that Hyflux was going into the business of selling electricity for the first time. A second charge, for non-disclosure related to Hyflux's offer on April 13, 2011, was taken into consideration during sentencing. Rajsekar, a 68-year-old Australian citizen and Singapore permanent resident, was fined $90,000 over the company's failure to disclose information relating to the Tuaspring project in 2011 as required. He was also barred from acting as a company director for five years. Corporate governance advocate Mak Yuen Teen said that Rajsekar's sentence 'may be a combination of lower culpability and his guilty plea' before trial. In seeking the $90,000 fine for Rajsekar, Deputy Public Prosecutor Kevin Yong noted that the harm caused was high while Rajsekar's culpability was low. The prescribed sentence is a fine of up to $250,000, a jail term of up to seven years, or both. Corporate finance lawyer Robson Lee, a partner at Kennedys Law, noted: 'The fact that one independent director pleaded guilty before the start of trial does not affect the legal positions of the other IDs or executive director and CFO to defend the charges against each of them.' The charges against the seven followed a joint probe in June 2020 by the Commercial Affairs Department, the Monetary Authority of Singapore and the Accounting and Corporate Regulatory Authority. The probe was initiated after a review of Hyflux's compliance with accounting and auditing standards, as well as disclosure rules. It looked at whether there were lapses in Hyflux's disclosures concerning the Tuaspring project, and non-compliance with accounting standards between 2011 and 2018. Source: The Straits Times © SPH Media Limited. Permission required for reproduction. Print
Business Times
2 days ago
- Business
- Business Times
Hearing of Hyflux founder and ex-CEO Olivia Lum, ex-CFO and directors starts Monday
[SINGAPORE] The trial of Hyflux founder and former chief executive Olivia Lum, its ex-chief financial officer (CFO), and four independent directors is slated to begin on Monday (Aug 11). Their trial comes after former director Rajsekar Kuppuswami Mitta , 68, was fined S$90,000 and barred from holding any directorship following his guilty plea on Thursday over Hyflux's failure to disclose information relating to the Tuaspring integrated water and power project in 2011 as required under Singapore Exchange (SGX) listing rules. Lum also allegedly failed to ensure that Hyflux made disclosures required under the accounting standards for its financial statements for the financial year ended Dec 31, 2017. PHOTO: ST Lum and the other five accused persons will be jointly tried before District Judge Toh Han Li. The trial is scheduled to take place over 57 days until February 2026, court records showed. Lum, 64, faces six charges: four counts of Companies Act violations and two counts of breaching the Securities and Futures Act. She was first charged in November 2022, together with the water treatment firm's ex-CFO Cho Wee Peng and four board members, including ex-director Rajsekar, for disclosure-related offences under the Securities and Futures Act. She was accused of consenting to the non-disclosure of information relating to the Tuaspring integrated water and power project in 2011, despite such information being required under the listing rules, while the directors were allegedly negligent in the matter. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up She also allegedly failed to ensure that Hyflux made disclosures required under the accounting standards for its financial statements for the financial year ended Dec 31, 2017. In May 2023, she was subsequently slapped with three counts of breaching the Companies Act, while another independent director, Lee Joo Hai, was charged in March that year over Hyflux's non-disclosures. Former CFO Cho will be on trial after being charged with one count of violating the Securities and Futures Act due to allegedly conniving in Hyflux's intentional failure to disclose information relating to Tuaspring. Olivia Lum, 64, ex-CEO Lum, 64, faces six charges: four counts of Companies Act violations and two counts of breaching the Securities and Futures Act. PHOTO: BT FILE Charged with six counts: four counts of Companies Act violations and two counts of breaching the Securities and Futures Act The Securities and Futures Act charges are: For consenting to Hyflux's intentional failure to disclose information relating to the Tuaspring Integrated Water and Power Project despite listing rules requiring it. She could be jailed for up to seven years, fined up to S$250,000, or both, if convicted of this non-disclosure offence. For Hyflux's omission of information about Tuaspring in the 2011 offer information statement issued for the offer of S$200 million, 6 per cent preference shares on Apr 13, 2011. She faces a jail term of up to one year, fines of up to S$150,000, or both, if found guilty. The Companies Act charges are: Failure to ensure that Hyflux made disclosures required under the accounting standards for its financial statements for the financial year ended 2017. She could be fined up to S$50,000 if convicted of this offence. Those deposits, which the company had undertaken not to withdraw, were with Mizuho Bank. The financial statements released on Nov 9, 2017, for the third quarter and for the nine months ended September 2017 disclosed restricted bank balances amounting to about S$73.7 million, without the inclusion of US$33.5 million. Those released on Feb 27, 2018, for the financial year ended December 2017 disclosed restricted bank balances of about S$67 million, which the authorities said should have included the Mizuho Bank deposits of US$33.5 million. For the statements published on May 9, 2018, for the first quarter ended March 2018, restricted bank balances amounting to about S$65.7 million were disclosed, with US$47.5 million allegedly omitted. She could be jailed for up to one year or fined up to S$5,000 for each of these three offences. Out on bail of S$100,000. Represented by Senior Counsel Davinder Singh. Expand Cho Wee Peng, 56, ex-CFO He faces a jail term of up to seven years, fined up to S$250,000, or both, if convicted of this non-disclosure offence. PHOTO: BT FILE One count of violating the Securities and Futures Act, due to conniving in Hyflux's intentional failure to disclose information relating to Tuaspring. Faces a jail term of up to seven years, fines of up to S$250,000, or both, if convicted of this non-disclosure offence. Out on bail of S$160,000. Represented by Rajah & Tann lawyers. Expand Independent directors Teo Kiang Kok, Gay Chee Cheong, Christopher Murugasu, and Lee each face two charges of breaching the Securities and Futures Act: Neglect in connection with Hyflux's intentional failure to disclose information relating to Tuaspring, when such disclosure was required under the listing rules. Each faces a jail term of up to seven years, fines of up to S$250,000, or both, if convicted. Liable for Hyflux's omission to state the material information relating to Tuaspring in the 2011 Offer Information Statement issued for the offer of S$200 million, 6 per cent preference shares on Apr 13, 2011. Each faces a jail term of for up to two years, fines of up to S$150,000, or both, if found guilty. They are all represented by Shook Lin & Bok lawyers. Gay Chee Cheong, 68, director PHOTO: BT FILE Out on bail of S$160,000. Christopher Murugasu, 66, director PHOTO: BT FILE Out on bail of S$80,000 Teo Kiang Kok, 69, director PHOTO: BT FILE Out on bail of S$160,000
The Star
2 days ago
- Business
- The Star
Singapore's biggest corporate scandal - the criminal trial of Hyflux founder Olivia Lum and five others starts on Moday (Aug 11)
SINGAPORE (The Straits Times/ANN): The long-awaited criminal trial of Hyflux founder and former chief executive Olivia Lum Ooi Lin, former chief financial officer (CFO) Cho Wee Peng and several former board members will start on Aug 11, nearly three years after they were charged with violations of the Securities and Futures Act. Already, one of the defendants has thrown in the towel. In total, seven individuals have been charged over Hyflux's intentional failure to disclose information relating to the Tuaspring Integrated Water and Power Project, among other things. But six are contesting their charges in a 56-day trial scheduled to run from Aug 11 to Feb 5, 2026. The charges were filed more than a year after the failed water treatment firm was approved for winding up in 2021, leaving about 34,000 investors of perpetual securities and preference shares, who had sunk in a combined S$900 million, with nothing. On Aug 11, the prosecution will proceed on 11 charges against the six defendants. This includes two of the six charges Lum faces. The remaining four charges against Lum are stood down. The two charges proceeding against Lum relate to her consenting to Hyflux omitting information relating to Tuaspring , when disclosure was required under Singapore Exchange (SGX) listing rules. This information was necessary to avoid the establishment of a false market in Hyflux's securities, the charge said. According to the charge, she consented to intentionally failing to notify SGX that the Tuaspring project was Hyflux's expansion into a new business of selling electricity, and that the plant's profitability was contingent on electricity sales revenue, which was projected to make up a significant proportion of its overall revenue. This had implications for Tuaspring's resulting exposure to market risks arising from the volatility of electricity prices. If convicted of this charge, Lum, 64, faces up to seven years' jail, a fine of up to S$250,000, or both. She was also charged over Hyflux's omission to disclose the information about Tuaspring in the offer information statement issued for the offer of $200 million, 6 per cent preference shares on April 13, 2011. If convicted of this charge, she faces up to two years' jail, a maximum fine of $150,000, or both. Cho, 56, who was also Hyflux's group executive vice-president, was charged with conniving in Hyflux's omission to disclose the information about Tuaspring . The former Hyflux independent directors (IDs) also charged with disclosure-related offences are: Teo Kiang Kok , 69; Christopher Murugasu , 66; Gay Chee Cheong, 69; and Lee Joo Hai, 69. The four men were charged with two counts each – one for neglect relating to Hyflux's failure to disclose information relating to Tuaspring as required, and another for omitting material information in the 2011 offer information statement. But one other independent director, Rajsekar Kuppuswami Mitta, on Aug 7 pleaded guilty to a charge of neglect in relation to an announcement by Hyflux to the Singapore Exchange on March 7, 2011. The announcement stated that Hyflux had been named the 'preferred bidder' by national water agency PUB to build and operate Singapore's second and largest seawater desalination plant in Tuas for a concession period of 25 years. It also mentioned that a power plant would be built to supply electricity to the desalination plant, and that excess power would be sold to the power grid. But it did not disclose that Hyflux was going into the business of selling electricity for the first time. A second charge, for non-disclosure related to Hyflux's offer on April 13, 2011, was taken into consideration during sentencing. Rajsekar , a 68-year-old Australian citizen and Singapore permanent resident, was fined S$90,000 over the company's failure to disclose information relating to the Tuaspring project in 2011 as required. He was also barred from acting as a company director for five years. Corporate governance advocate Mak Yuen Teen said that Rajsekar's sentence 'may be a combination of lower culpability and his guilty plea' before trial. In seeking the S$90,000 fine for Rajsekar , Deputy Public Prosecutor Kevin Yong noted that the harm caused was high while Rajsekar's culpability was low. The prescribed sentence is a fine of up to $250,000, a jail term of up to seven years, or both. Corporate finance lawyer Robson Lee, a partner at Kennedys Law, noted that: 'The fact that one independent director pleaded guilty before the start of trial does not affect the legal positions of the other IDs or executive director and CFO to defend the charges against each of them.' The charges against the seven followed a joint probe in June 2020 by the Commercial Affairs Department, the Monetary Authority of Singapore and the Accounting and Corporate Regulatory Authority. The probe was initiated after a review of Hyflux's compliance with accounting and auditing standards, as well as disclosure rules. It looked at whether there were lapses in Hyflux's disclosures concerning the Tuaspring project, and non-compliance with accounting standards between 2011 and 2018. - The Straits Times/ANN
Business Times
2 days ago
- Business
- Business Times
Hearing of Hyflux founder, ex-CEO Olivia Lum, ex-CFO and directors starts Monday
[SINGAPORE] The trial of Hyflux founder and former chief executive Olivia Lum, ex-chief financial officer (CFO), and four independent directors is slated to begin on Monday (Aug 11). Their trial comes after former director Rajsekar Kuppuswami Mitta , 68, was fined S$90,000 as well as barred from directorship following his guilty plea on Thursday over Hyflux's failure to disclose information relating to the Tuaspring integrated water and power project in 2011 as required under Singapore Exchange (SGX) listing rules. Lum also allegedly failed to ensure that Hyflux made disclosures required under the accounting standards for its financial statements for the financial year ended Dec 31, 2017. PHOTO: ST Lum and the other five accused persons will be jointly tried in the hearing before District Judge Toh Han Li. The trial is scheduled to take place over 57 days until February 2026, court records showed. Lum, 64, faces six charges: four counts of Companies Act violations and two counts of breaching the Securities and Futures Act. She was first charged in November 2022, together with the water treatment firm's ex-CFO Cho Wee Peng and four board members, including ex-director Rajsekar, for disclosure-related offences under the Securities and Futures Act. She was accused of consenting to the non-disclosure of information relating to the Tuaspring integrated water and power project in 2011, despite such information being required under the listing rules, while the directors were allegedly negligent in the matter. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up She also allegedly failed to ensure that Hyflux made disclosures required under the accounting standards for its financial statements for the financial year ended Dec 31, 2017. In May 2023, she was subsequently slapped with three counts of breaching the Companies Act, while another independent director, Lee Joo Hai, was charged in March that year over Hyflux's non-disclosures. Former CFO Cho will be on trial after being charged with one count of violating the Securities and Futures Act due to allegedly conniving in Hyflux's intentional failure to disclose information relating to Tuaspring. Independent directors Teo Kiang Kok, Gay Chee Cheong, Christopher Murugasu, and Lee each face two charges of breaching Securities and Futures Act. Olivia Lum, 64, ex-CEO Lum, 64, faces six charges: four counts of Companies Act violations and two counts of breaching the Securities and Futures Act. PHOTO: BT FILE Charged with six counts: four counts of Companies Act violations and two counts of breaching the Securities and Futures Act The Securities and Futures Act charges are: For consenting to Hyflux's intentional failure to disclose information relating to the Tuaspring Integrated Water and Power Project despite listing rules require it. She could be jailed for up to seven years, fined up to S$250,000, or both, if convicted of this non-disclosure offence. Over Hyflux's omission to disclose the information about Tuaspring in the 2011 offer information statement issued for the offer of S$200 million, 6 per cent preference shares on Apr 13, 2011. She faces a jail term of for up to two years, fined up to S$150,000, or both, if found guilty. The Companies Act charges are: Failure to ensure that Hyflux made disclosures required under the accounting standards for its financial statements for the financial year ended 2017. She could be fined up to S$50,000 if convicted of this offence. Those deposits, which the company had undertaken not to withdraw, were with Mizuho Bank. The financial statements released on Nov 9, 2017, for the third quarter and for the nine months ended September 2017 disclosed restricted bank balances amounting to about S$73.7 million, without the inclusion of US$33.5 million. Those released on Feb 27, 2018, for the financial year ended December 2017 disclosed restricted bank balances of about S$67 million, which the authorities said should have included the Mizuho Bank deposits of US$33.5 million. For the statements published on May 9, 2018, for the first quarter ended March 2018, restricted bank balances amounting to about S$65.7 million were disclosed, with US$47.5 million allegedly omitted. She could be jailed for up to one two year or fined up to S$5,000 for each of these three offences. Out on bail of S$100,000. Represented by Senior Counsel Davinder Singh. Expand Cho Wee Peng, 56, ex-CFO He faces a jail term of up to seven years, fined up to S$250,000, or both, if convicted of this non-disclosure offence. PHOTO: BT FILE One count of violating the Securities and Futures Act, due to conniving in Hyflux's intentional failure to disclose information relating to Tuaspring. Faces a jail term of up to seven years, fined up to S$250,000, or both, if convicted of this non-disclosure offence. Out on bail of S$160,000. Represented by Rajah & Tann lawyers. Expand All four independent directors were charged with two counts of flouting the Securities and Futures Act: Neglect in connection with Hyflux's intentional failure to disclose information relating to Tuaspring, when such disclosure was required under the listing rules. Each faces a jail term of up to seven years, fined up to S$250,000, or both, if convicted. Liable for Hyflux's omission to state the material information relating to Tuaspring in the 2011 Offer Information Statement issued for the offer of S$200 million, 6 per cent preference shares on Apr 13, 2011. Each faces a jail term of for up to two years, fine of up to S$150,000, or both, if found guilty. They are all represented by Shook Lin & Bok lawyers. Gay Chee Cheong, 68, director PHOTO: BT FILE Out on bail of S$160,000. Christopher Murugasu, 66, director PHOTO: BT FILE Out on bail of S$80,000 Teo Kiang Kok, 69, director PHOTO: BT FILE Out on bail of S$160,000
