November 12, 2021, 03:58 PM
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Three people were charged in court on Nov. 12 over disclosure offences, the police said in a news release.
The three individuals are:
Former Pokka International chief executive officer Alain Ong Eng Sing, 46, who is the husband of actress Vivian Lai
Former Kimly executive chairman Lim Hee Liat
Former Kimly executive director Chia Cher Khiang
Charges
Two former Kimly directors
The two former directors of Kimly were charged with disclosure offences.
They were each charged with one count of failing to notify the Singapore Exchange (SGX) of Kimly's acquisition of drinks company Asian Story Corporation.
Kimly is a listed coffee shop operator that also runs food courts.
It acquired drinks manufacturer Asian Story Corporation, which was announced on July 2, 2018.
The police said the acquisition was an interested person transaction, which should have been disclosed under the SGX Catalist Rules, but it was not declared.
Lim was slapped with an extra charge of failing to disclose his indirect interest in the acquisition.
Lim had partial beneficial ownership of Asian Story Corporation, court documents said.
CNA reported that bail was offered to Chia and Lim.
Chia was offered S$50,000 bail.
Lim was offered S$70,000 bail.
The Straits Times reported that Chia and Lim had notified the board of their resignations in a regulatory update by Kimly on Nov. 11.
The group said Kimly's board has requested the two to remain as employees to assist and facilitate the board and management in the transition.
Former Pokka International CEO
The former CEO of Pokka International faces three charges of failing to disclose his indirect interest in a transaction with Pokka International.
Ong was also a director in Pokka International and Pokka Corporation.
Background of charges
It was alleged that Ong, who was a director in Pokka International and Pokka Corporation (Singapore), had partial beneficial ownership of Asian Story Corporation.
On three occasions when Asian Story Corporation entered into transactions with Pokka International and Pokka Corporation, Ong had allegedly failed to disclose his interest in these Pokka entities.
Two of those occasions took place in 2010 and 2016.
In 2010, Ong had allegedly failed to disclose his interest during a distribution agreement between Pokka International and Asian Story Corporation.
In 2016, he had also allegedly failed to disclose his interest during a manufacturing agreement between the two companies.
In February 2017, Ong became a non-executive and non-independent director of Kimly.
Ong was asked to leave Pokka International in September 2018.
Penalties
If convicted for offences under the Securities and Futures Act, they can be jailed for up to seven years, fined up to S$250,000 or both.
If convicted for offences under the Companies Act, they can be jailed for up to 12 months or fined up to S$5,000.
Ties between Kimly, Asian Story Corporation, and Pokka
Kimly acquired Asian Story Corporation in July 2018.
It was revealed that Pokka's former CEO, identified as Alain Ong, was behind the listing of Kimly on SGX, as well as the acquisition of Asian Story Corporation.
Ong is the husband of local artiste and former Pokka ambassador, Vivian Lai.
During his time at Pokka, Ong also allegedly artificially inflated the value of Asian Story Corporation and secretly used Pokka's resources to turn the firm into one that produces as many as 27 different types of beverages.
He allegedly boosted the sales of Asian Story products by incentivising Pokka workers to sell more Asian Story products.
Pokka accused Ong of damaging the company's interests and promoting Asian Story's beverages with the intention of raising the firm's value and paving the way for Kimly's acquisition of Asian Story Corporation.
Ong allegedly did not disclose these activities, his relationship with Kimly, and the personal gains he obtained from Kimly to Pokka.
This led to his suspension from Pokka and an internal audit that was reported in September 2018.
Eight other employees were also allegedly suspended and ordered to stay away from company premises during the audit period.
However, they were not identified.
Ong's actions, which have violated the Securities and Futures Act, apparently cost Pokka a loss of at least S$6.51 million, which the company sued him for.
It was reported that Ong then joined Kimly Limited.
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