Unauthorised Transactions Worth Over $6m Allegedly Linked to CEO

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Tee International, the Mainboard listed engineering group, has hired an external third party investigator to look into the unauthorised transactions worth $6.55 million made by Tee’s subsidiaries to related parties – reported by The Straits Times. 

The transactions are said to be allegedly made under the orders of the group chief executive and managing director Phua Chian Kin. The said transactions are reported to have taken place from July 2018 to May 2019.

The Strait Times reported: “Remittances amounting to $3 million were recorded as ‘other receivables’, which were reported as unauthorised by an external auditor Deloitte as they were unable to verify the nature of such remittances”

The unauthorised transactions also included $3.75 million  that was paid by two subsidiaries to Mr. Phua & Oscar Investment, an investment holding company incorporated in the British Virgin Islands and wholly owned by Mr. Phua. The money was paid over 4 transactions in 2019 on the following dates – Feb 12, Mar 1, Mar 4, Mar 8.

Another transaction that took place on July 19, 2018 totalling to $2.8 million was paid by Oscar Investments to PBT Engineering with the claims that the money was deposited into a fixed account to activate a banking credit line granted to PBT Engineering. Repayment was made on July 24, 2018.

The subsidiaries involved in this unauthorised deal were Tee International’s wholly owned units, PBT Engineering & Trans Equatorial. Tee International also reported that Mr. Phua claimed the money was utilised to pay for expenses to secure an engineering project for the group, but no evidence has been provided by Mr Phua to support the nature of these remittances.

The review commenced on Sep 2, 2019. Until the completion of the review, Mr. Phua has been removed as an authorised signatory for all payments and also has been relieved of his current role and duties as a group chief executive and managing director.

The transactions, which took place from July 2018 to May 2019, were allegedly made under the instruction of group chief executive and managing director Phua Chian Kin, said Tee International. 

Written by

Cheryl Toh

Last updated on

September 9th 2019, 1:55 pm

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