Ex-director concealed S$1.5m fee he stood to gain from owner of medical business his firm was acquiring

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SINGAPORE: Despite knowing that he stood to gain S$1.5 million from the owner of a medical business if the latter was acquired by his company, a director did not disclose this conflict of interest to the board. The deal went through, with women's and children's healthcare group Singapore O&G (SOG) acqu

SINGAPORE: Despite knowing that he stood to gain S$1.5 million from the owner of a medical business if the latter was acquired by his company, a director did not disclose this conflict of interest to the board.

Chong had contested the charges and was defended by a team of lawyers from Drew & Napier comprising Senior Counsel Cavinder Bull, Adam Maniam, Gerald Tay, Charmaine Yap and Chai Wen Min. Chong, a Malaysian and Singapore permanent resident, received a recommendation sometime between 2013 and 2015 for SOG to consider including Dr Lee on its platform.

This was for an"introduction fee","consultancy services","financial advisory","due diligence advisory" and"documentation review" work carried out. Court documents did not state how the case came to light, except that the Corrupt Practices Investigation Bureau became involved.At trial, the other directors testified that they were unaware that Chong would be receiving S$1.5 million from Dr Lim in connection with the acquisition.

 

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