Sunday , January 17 2021

Singaporeans petition President Halima to appoint investigative commission to consider Hufflux

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More than 800 people submitted a petition to President Halima Jakob to appoint an investigative commission to review Hyflux.

About 34,000 centuries of securities and priority shareholders investing in the water supply and electricity company are owed $ 900 million, but will only receive a refund rate of 10.7 percent, which will consist of 3 percent in cash and 7 percent in capital.

Calling these small investors "Obverse risk and non-sophisticated investors" the online petition noted that these investors chose to invest their hard-earned assets in Hyflux because they believe the company's desalination plant is a strategic national treasure.

The online petition comes after shareholders and investors wonder why Hyflux's audit firm gave the organization a clean health bill in its annual reports over the last decade, rather than undermining Hufflex's risk of engaging in heavy debt.

KPMG has audited Hyflux since 2008. Hyflux fell in red for the first time in 2017, after being named in 2001. Two months later he filed for bankruptcy.

The move shocked investors who believed the company was healthy. In fact, Hyflux's financial statements before this point are not a cause for concern, because it was prepared on the basis of an accounting method that presupposes that the company will remain solvent and will work indefinitely until proved otherwise.

Asked the president to intervene, filed the plaintiffs "Appoint an investigative commission to independently review this issue". The applicant asked the audit to consider whether appropriate steps were taken to protect the interests of investors.

See the petition, which is close to 1,000 signatures, HERE. One of the people who signed the petition is former presidential candidate and CEO of NTUC, Tan Kin Lian, who has funded a recent protest in Hong Lim Park against plans for restructuring Hufflex.

The petition was organized after Singapore regulators began a review of Hyflux to find out whether the company with indebted debts violated the regulations.

In a joint statement on Channel NewsAsia, the Singapore Monetary Authority (MAS), the Accounting and Corporate Regulatory Commission (AKRA) and the Singapore Exchange of Regulations (SGX) announced that they "Currently browsing Hybrid-related issues related to Hyflux".

MAS, ACRA and SGX are also on the lookout "compliance with accounting and auditing standards to determine whether there has been a violation of the listing rules and / or relevant laws and regulations ".

Hufflux, who approaches the end of the debt moratorium on April 30th, told the publication that it was "Fully cooperates" with regulators.

Analysts said the likelihood of liquidation for Hyflux had increased, especially after Salim-Medko's rescue agreement failed with without warranty to another such agreement. The Indonesian consortium was considered "white knight" and the only hope for retail investors of Hyflux that are left high and dry.

On Monday, Hyflux applied for a call to the Singapore High Court against the Indonesian consortium "to launch an action against the developer for restructuring the restructuring contract," as well as request a $ 38.9 million deposit.

Bloomberg writer called Hufflex's "story of corporate ruin" with 34,000 victims

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