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Former Hyflux Chief Executive Officer Olivia Lum Ooi Lin was charge in court on May 5 with an additional three offences under the Companies Act.

This is in addition to three previous charges of failing to ensure Hyflux’s compliance with accounting standards and for disclosure-related offences.

New Charges

Lum was given three additional charges of failing to exercise reasonable diligence in the discharge of her duties as a director, for approving the release of unaudited financial statements on three instances between 2017 and 2018, according to a statement by the Singapore Police Force (SPF) on May 5.

These statements omitted to disclose that certain bank deposits were restricted bank balances that Hyflux had undertaken not to withdraw.

The first statement was for the third quarter and nine months ending 30 September 2017, with about S$45.6 million of deposits not disclosed.

The second was for the three months ending December 2017, with about S$44.1 million of deposits not disclosed; and the third was for the first quarter of 2018, ending Mar 31 2018, with about S$63.7 million of deposits not disclosed.

For each of these charges, Lum faces up to 12 months imprisonment, or a fine of up to S$5,000.

Three previous charges

Lum's previous charges from November 2022 comprise two disclosure-related charges and one for failing to ensure Hyflux's compliance with accounting standards.

One other independent director of Hyflux, Lee Joo Hai, was also charged over his negligence in connection with Hyflux's intentional failure to disclose information relating to the Tuaspring Integrated Water and Power Project.

Disclosure of the information was required under the Singapore Exchange Listing Rules, said SPF.

Lee faces up to seven years in prison and a fine of up to S$250,000.

Lee had left Singapore before investigations had commenced, but was arrested in Malaysia in Mar 2023 with the assistance of the Royal Malaysian Police.

No longer in flux

Water treatment company Hyflux was wound up in 2021, three years after it filed for bankruptcy protection, according to Nikkei.

This was after attempts to intervene by companies such the United Arab Emirates' Utico had failed.

The company, valued at S$2 billion at its peak in 2010, was once known as an up-and-coming startup thanks to its proprietary water-recycling technology.

But it underwent a severe downturn in its fortunes due to changes in Singapore's energy market.

Furthermore, it had invested heavily in the Tuaspring desalination plant, which ultimately failed to meet its ambitious goals.

Failure to sell the plant would eventually signal the end for Hyflux.

Drawing further attention to these woes was Lum's remuneration, considered to be extremely high at a time when the company was undergoing severe stress.

In 2020, after the completion of a year-long review, a probe into the company was launched by the Singapore Police Force, the Monetary Authority of Singapore, the Accounting and Corporate Regulatory Authority, as well as the Commercial Affairs Department. 

This probe has led to the charges against Lum and other members of Hyflux's leadership.

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Top image by Matthias Ang