Unfounded Claims of Unpaid Salaries
Catalist-listed Advanced Systems Automations (ASA) has responded to queries from the Singapore Exchange (SGX) with a new disclosure regarding unauthorized fund transfers. The company reported that its former chief executive, Seah Chong Hoe, claims three cheques totaling over S$1 million, which were issued from the company’s bank account to him, were for unpaid salaries and other money owed. However, the semiconductor equipment manufacturer’s board has stated that it has found no explicit record in the company’s books documenting these payments for such purposes. This disclosure is part of a larger issue for the company, which has lodged a police report concerning “potential offenses” committed by Seah and former director Mohd Sopiyan Mohd Rashdi, who bypassed the board to become bank signatories for ASA’s Maybank account. The central conflict now rests between the former CEO’s personal claims and the official financial records of the company.
The Timeline of Unauthorized Fund Transfers
The company’s report outlined a specific timeline of events and financial transactions. After the unauthorized change in bank signatories, three separate cheques were issued to Seah: one for S259,013, and a third for S903,594.46 from the bank account of ASA’s wholly owned Malaysian subsidiary, Emerald Precision Engineering, to the company’s own bank account, an instruction allegedly given by Seah himself. Adding to the timeline of his departure, Seah also resigned as a director—effective July 21—from three of the group’s Malaysian subsidiaries: Emerald Precision Engineering, Yumei Technologies, and Yumei Real Estate Investment Trust. He also resigned as managing director of Yumei Technologies, all of which highlights the swift end to his corporate role amidst these serious allegations.
Financial Stability Amidst Corporate Dispute
Advanced Systems Automations is currently seeking legal advice regarding Seah’s claims and is reviewing the basis of the allegedly outstanding amounts to determine their authenticity. The company has stated that if it is determined that Seah is not entitled to these amounts, it will pursue reimbursement, which would positively impact the group’s financial position. Conversely, if reimbursement is unsuccessful, there will be no material impact on the company’s financial position, as these amounts have already been recorded as liabilities on its balance sheet. Therefore, ASA maintains that its financial and operational stability remains intact, allowing it to continue business operations regardless of fund recovery. This financial stability is crucial, especially as ASA is a subsidiary of mainboard-listed Asti, which is currently on the SGX watch list, with its shares suspended from trading since July 2022 after being ordered to delist for failing to meet watch list exit criteria.
