TEE International appointed PricewaterhouseCoopers Risk Services as its external investigator to probe unauthorized remittances and their impact on the financial statements as well as whether there were other undisclosed payments, the company said in a filing to SGX Friday.
The investigator is authorized to discover the circumstances leading to the remittances and to review the work of both the internal and external auditors, the filing said.
PricewaterhouseCoopers Risk Services will also analyze cash inflows and outflows to determine if there are other unusual payments to be investigated, and review inter-company transactions for unusual fund flows, the filing said.
The investigator will report to and take instructions from Singapore Exchange Regulation, TEE International said.
TEE International had said Saturday it would appoint an investigator to examine payments that weren’t disclosed to the board and/or executive committee.
Last week, the company said it identified the payments to related parties and company subsidiaries which were made and/or received under the instruction of Phua Chian Kin, group chief executive and managing director of TEE International.
The monies have been fully repaid by and to the group, TEE International said last week, adding the payments were discovered while preparing the full-year financial statements for the fiscal year ended 31 May.
The related parties, which all both received and paid remittances, were Oscar Investment, a British Virgin Islands-based company wholly owned by Phua; TEE’s wholly owned subsidiaries PBT Engineering and Trans Equatorial Engineering; and Phua, TEE has said.
“Mr. Phua claimed that these remittances have been used to pay for certain expenses to secure a relevant engineering project for, on behalf, and exclusively for the benefit of, the group. However, no supporting documents have been provided by Mr. Phua to support the nature of these remittances,” TEE International said Sunday.
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