Temasek: No relationship with alleged Cambodian scam ring or its subsidiaries

Singapore state investment company Temasek Holdings has issued a statement saying that it has no relationship with and is not involved in the alleged Cambodian scam ring linked to Prince Holding Group.

The statement comes after a Bloomberg report titled “Singapore Ties to Alleged Cambodian Scam Ring Under Spotlight” published on Oct. 16.

The article alleged that Chen Zhi, the chairman of Prince Holding Group, had set up a "family office in Singapore that claimed to receive tax breaks" while "building relationships with firms backed by state investor Temasek Holdings Pte and spending millions on properties in the city-state".

Temasek has called the article "misleading", "inaccurate reporting" and "at the very least mischievous", saying that the framing suggests the firm's and its portfolio companies' involvement in the case.

Background

Prince Holding Group is a U.S.-designated transnational criminal organisation allegedly behind scam losses amounting to billions.

Just a few days prior, on Oct. 14, three Singaporeans were announced by the U.S. Treasury's Office of Foreign Assets Control to be sanctioned for their alleged links to the transnational Cambodian scam syndicate.

The individuals are Chen Xiuling (who also goes by Karen Chen), 43, Nigel Tang Wan Bao Nabil, 32, and Alan Yeo Sin Huat, 53.

They are suspected of acting in various capacities for mastermind Chen.

17 Singapore-registered companies were also added to the Specially Designated Nationals (SDN) list.

Temasek no involvement with Prince Holding Group or its subsidiaries

One of the Singaporeans, Chen, oversees Prince Holding Group's companies based in Mauritius, Taiwan and Singapore, the U.S. Treasury said.

Chen was an independent director of 17LIVE Group Ltd., which Bloomberg described as a "Temasek-backed live-streaming platform" before her resignation on Thursday.

In their statement on Friday, Temasek said it has no relationship with Prince Holding Group or any of its subsidiaries, including the appointment of any directors to the 17Live board.

It clarified that of the 26 per cent deemed interest in 17Live, the majority is held by Vertex Ventures.

Vertex Venture is a Singapore-headquartered venture capital investment holding company that is a wholly-owned subsidiary of Temasek, according to their website.

One of the three aforementioned individuals being sanctioned, Chen, was an independent director from 17Live Group.

A spokesperson for Temasek told Bloomberg that Temasek was not involved in the appointment of any directors to 17Live, including Chen.

The 17Live chief investment officer also said in an email response before Chen's resignation that the firm was aware of the allegations against Chen only after Bloomberg's report, and that there was a "usual" due diligence in vetting her.

He also said neither Temasek nor Vertex Ventures were "involved in Chen’s nomination or appointment as director".

Temasek's statement said that it holds a 3.6 per cent stake acquired when the special purpose acquisition company (SPAC) went public.

However, it does not direct the business operations of its portfolio companies and expects their boards and management teams to operate in full compliance with the laws and regulations of the markets they are in, Temasek stated.

Portfolio companies' ties to Prince Group

According to Temasek, the article also implied that their portfolio companies Surbana Jurong (SJ Group) and Ascott had formed deeper ties with the Prince Group via its subsidiary, Canopy Sands Development Co.

Both companies have provided statements to highlight that their business dealings with Canopy were limited to "professional service agreements with no ownership stakes", it added.

SJ Group undertook a master planning assignment for Canopy Sands that ended in 2022.

It said it had no ownership or operational role and has no ongoing projects with Prince Holding Group or its entities currently.

Ascott, a CapitaLand subsidiary, was reportedly appointed to provide hospitality management services for two hotels in Cambodia.

It holds no ownership stake in the properties, Temasek noted.

"We are issuing this statement to ensure that the public has an accurate representation of Temasek’s and our portfolio companies' non-involvement in this case."

Top photos from Prince Holdings and AsiaTimes