China Environment said on Thursday that its directors had received a letter from Singapore’s Accounting and Corporate Regulatory Authority (ACRA) saying the authority was investigating possible offences under the Companies Act.
The letter, dated 5 December, said that ACRA has required the attendance of the directors for an interview to provide information on the case, it said in a filing to SGX before the market open on Thursday.
“The directors will cooperate fully with ACRA in its investigation,” China Environment said in the filing.
“We will make announcements as and when there are further significant developments on the investigation and provided that such disclosures are permissible and will not impede the investigation work of the relevant authorities,” it said.
China Environment’s shares have been suspended from trade since 2016.
At the beginning of November, China Environment said it had been informed recently by a business partner that its wholly owned subsidiary, Xiamen Gongyuan Environmental Protection Technology (XMGY), had formed a liquidation committee.
And in June, China Environment said that it met with the management of wholly owned subsidiary Anhui Dongyuan Environmental Protection (AHDY) as part of its effort to take back the company seals due to its suspicions that the subsidiary was misappropriating rental income.
At the meeting which was arranged to “amicably resolve the issue” after AHDY had previously refused to hand over the seals, the subsidiary’s management claimed they hadn’t misappropriated any rental monies, China Environment said in a filing to SGX in June.
AHDY management, however, also said it wouldn’t allow China Environment to take control of its funds due to pressure from a mainland China creditor Li Qun Bin, to which AHDY allegedly owes a loan of 6.47 million yuan, the filing said.