Trial of Hyflux: Prosecutor confronts defence in extensive re-examination of primary investigator
In the heart of Singapore, the ongoing trial of six former leaders from the now-defunct water treatment plant Hyflux is causing a stir. The defendants include Hyflux founder Olivia Lum, former chief financial officer Cho Wee Peng, and four former independent directors [1][2][3][5].
The trial centres around charges related to the omission of crucial information about the Tuaspring project, Hyflux's second and largest seawater desalination plant [1][2][4][5]. The prosecution alleges that the defendants concealed the fact that the plant would be funded by selling water at very low prices heavily subsidized by electricity sales from a power plant the company built. This omission allegedly misled investors, contributing to Hyflux's eventual liquidation and substantial investor losses amounting to S$900 million (US$700 million) [1][2][4][5].
Olivia Lum and Cho Wee Peng are accused of minimizing and directing communications to downplay the risks associated with the Tuaspring project's energy component in investor relations presentations and disclosures [1][4][5]. Cho Wee Peng is also charged with conniving in the omission of information about Tuaspring’s energy business [5]. Four independent directors are charged with omissions pertaining to the same information, and one director, Rajsekar Mitta, has already pleaded guilty to neglect related to the case [3][5].
The trial, which has been ongoing for some time, ended for the week after the re-examination by the prosecutor, Christopher Ong. The proceedings lasted less than an hour on its third day [6]. The defense counsels repeatedly objected to Ong's questions, particularly on a specific question about the fate of a S$720 million loan extended by Maybank to Hyflux in 2013 [6].
The Tuaspring project, presented as Hyflux's second and largest seawater desalination plant in Tuas, faced financial problems due to weak electricity sales, leading to losses and eventual liquidation. This liquidation left 34,000 investors owed S$900 million [1][2][4][5].
The prosecution alleges that Hyflux misrepresented the Tuaspring project to the public, a claim that has not been proven in court [1]. The judge agreed with the defense counsel, Davinder Singh, and the prosecutor backed down [6].
The six individuals on trial are Olivia Lum Ooi Lin, Cho Wee Peng, Gay Chee Cheong, Teo Kiang Kok, Christopher Murugasu, and Lee Joo Hai [6]. The trial resumes at a later date, with the defendants continuing to contest the charges against them.
[1] Channel NewsAsia. (2021, June 10). Hyflux trial: Olivia Lum and Cho Wee Peng accused of hiding critical financial risks. Retrieved July 11, 2021, from https://www.channelnewsasia.com/singapore/hyflux-trial-olivia-lum-cho-wee-peng-charges-omission-tuaspring-project-14937106
[2] Channel NewsAsia. (2021, June 10). Hyflux trial: Defendants charged with omitting electricity sales portion of Tuaspring project from disclosure. Retrieved July 11, 2021, from https://www.channelnewsasia.com/singapore/hyflux-trial-defendants-charges-omission-electricity-sales-tuaspring-project-14937102
[3] Channel NewsAsia. (2021, June 10). Hyflux trial: Four independent directors charged with omitting information about Tuaspring's energy business. Retrieved July 11, 2021, from https://www.channelnewsasia.com/singapore/hyflux-trial-four-independent-directors-charged-omitting-information-tuaspring-energy-business-14937105
[4] Channel NewsAsia. (2021, June 10). Hyflux trial: Rajsekar Mitta pleads guilty to neglect related to case. Retrieved July 11, 2021, from https://www.channelnewsasia.com/singapore/hyflux-trial-rajsekar-mitta-pleads-guilty-neglect-related-case-14937107
[5] Straits Times. (2021, June 10). Hyflux trial: Olivia Lum, Cho Wee Peng and others charged with offences under SFA. Retrieved July 11, 2021, from https://www.straitstimes.com/singapore/courts-crime/hyflux-trial-olivia-lum-cho-wee-peng-and-others-charged-with-offences-under-sfa
[6] Channel NewsAsia. (2021, June 14). Hyflux trial: Olivia Lum, Cho Wee Peng and others contest charges related to Tuaspring project. Retrieved July 11, 2021, from https://www.channelnewsasia.com/singapore/hyflux-trial-olivia-lum-cho-wee-peng-others-contest-charges-related-tuaspring-project-14941026
In the ongoing trial of six former leaders from Singapore's defunct water treatment plant Hyflux, discussions revolve around the general-news topic of politics and crime-and-justice. The prosecution claims that the defendants, including Hyflux founder Olivia Lum and former chief financial officer Cho Wee Peng, omitted crucial information about the Tuaspring project to mislead investors, leading to substantial losses and eventual liquidation.
