Singapore Kitchen Equipment under CAD probe

SINGAPORE (THE BUSINESS TIMES) – Catalist-listed Singapore Kitchen Equipment (SKE) disclosed in a bourse filing on Monday (July 4) that it has been ordered by the Commercial Affairs Department (CAD) to produce various categories of documents to assist with an investigation into an offence.

The company had earlier conducted fact-finding reviews on eight transactions worth about $1.4 million that majority shareholder, QKE Holdings, had made on behalf of its main operating subsidiary, Q’son Kitchen Equipment (QKE).

The documents that the CAD requested on June 29 include a report prepared by Rajah & Tann dated April 25, 2022, relating to the eight transactions, invoices issued by Activa Media to QKE, and other relevant e-mails, bank statements and meeting minutes.

Lawyers from Rajah & Tann had found that former SKE chief financial officer Chow Mei Ling had unilaterally altered the company’s documents, or instructed such alterations, to “simplify” the external audit process. They had not uncovered any evidence to suggest that the alterations were to facilitate or conceal criminal breach of trust, or fraud involving third parties.

SKE said in its Monday filing that the business and operations of the group are not affected by the investigations, and that it will make further announcements as it monitors the progress of the investigations.

The Accounting and Corporate Regulatory Authority has also been investigating SKE for possible breaches of Section 402(1) of the Companies Act.

The section makes it an offence for a company’s officer, with intent to deceive, to make, furnish, or knowingly and willfully authorise or permit the making or furnishing of any false or misleading statement or report to a director, auditor, member, or debenture holder of the corporation, or to an auditor of its parent company.