Three of Singapore’s regulatory bodies have announced a review of Hyflux’s practices to investigate any possible breaches on the part of the water treatment firm on Tue (16 Apr).
Responding jointly to CNA‘s queries, the Monetary Authority of Singapore, the Accounting and Corporate Regulatory Authority and the Singapore Exchange Regulation said that they are “currently reviewing Hyflux-related disclosure issues”.
The three regulatory bodies are also scrutinising Hyflux’s “compliance with accounting and auditing standards, to determine if there have been breaches of listing rules and/or the relevant laws and regulations”.
Hyflux told CNA that it is “cooperating fully” with the regulators.
Earlier this month, MAS said that there was no form of ‘impropriety’ found in DBS’ arrangement of the sale of perpetual securities by Hyflux in 2016.
Responding to Bloomberg‘s queries, MAS added that DBS Group Holdings Ltd. had acted in compliance of regulatory requirements as both manager and distributor of the perpetual securities.
“As the issue manager, DBS conducted due diligence checks to ensure that material information relating to Hyflux was highlighted in the offering document,” added the Authority.
For example, MAS highlighted that DBS had reminded its investors to read the disclosure documents thoroughly before making and submitting their applications while the bank distributed the bonds via its automatic-teller machines.
“All investments carry risks,” the MAS said, adding: “The deterioration in Hyflux’s financial conditions that led to losses for investors illustrates this.”
Hyflux, drowning in S$2.7 billion in liabilities as of the end of Sep last year, has given up on a “$380 million rescue package” from the Salim-Medco Group consortium, which was offered “in exchange for a 60% stake” in the water treatment company, as a result of the termination of the bailout deal with SMI.