Advanced Systems Automations ex-CEO claims unauthorised fund transfers were for unpaid salaries

[SINGAPORE] Catalist-listed Advanced Systems Automations (ASA) on Thursday (Jul 24) said that its former chief executive Seah Chong Hoe claimed that cheques issued to him from the company’s bank account were for unpaid salaries and other monies he was owed.

“However, the board has, to date, found no record in the company’s books explicitly documenting that the payments via the three cheques were for such purposes,” said the company, which manufactures equipment for semiconductor assembly.

This was in response to queries from the Singapore Exchange (SGX) about unauthorised fund transfers and a police report the group lodged against Seah and its former director, Mohd Sopiyan Mohd Rashdi, for “potential offences”.

The two had bypassed the board in making themselves bank signatories of the company’s Maybank bank account, the group said previously.

Following the unauthorised change in bank signatories, three cheques for S$442,052.18, S$259,013 and S$310,000 were issued from the company’s bank account to Seah.

Prior to the cheques being issued, Seah also instructed for S$903,594.46 to be transferred from the bank account of ASA’s wholly owned Malaysian subsidiary, Emerald Precision Engineering, to the company’s bank account.

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ASA said it is obtaining legal advice regarding Seah’s claims as well as reviewing the basis of the outstanding amounts allegedly owed to him to determine if they are genuine.

“In the event it is determined that Seah is not entitled to these outstanding amounts, the company will seek reimbursement of the outstanding amounts,” ASA said.

In the event a reimbursement is successful, it would positively affect the group’s financial position, ASA said.

However, if a reimbursement is unsuccessful, there will be no material impact on the company’s financial position as the amounts have already been recorded as liabilities in its balance sheet.

Hence, the group maintained that its financial and operational stability remain intact and that it will be able to carry on business in the ordinary course, regardless of whether the funds are recovered.

With effect from Jul 21, Seah resigned as director of three of the group’s Malaysian subsidiaries: Emerald Precision Engineering, Yumei Technologies and Yumei Real Estate Investment Trust. He also resigned as managing director of Yumei Technologies.

ASA is a subsidiary of mainboard-listed Asti, which designs, develops, manufactures and markets semiconductor equipment.

Asti is on the SGX watch list. Its shares have been suspended from trading since July 2022, prior to which the company was ordered by SGX to delist for failing to satisfy the watch list exit criteria.

The counter finished Thursday 14.3 per cent or S$0.001 higher at S$0.008, before the announcement.