Raffles Education: CAD to arrest certain directors, including Chairman Chew, in Affin Bank investigation

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Raffles Education said early Tuesday the Commercial Affairs Department (CAD) of the Singapore Police Force notified certain directors, including Chairman and CEO Chew Hua Seng, to attend the CAD offices for their formal arrest and posting and release on bail. 

Other directors who were notified to attend the CAD’s offices were Lead Independent Non-Executive Director Lim How Teck, Non-Independent Non-Executive Director Joseph He Jun and Independent Non-Executive Director Ng Kwan Meng, as well as Doris Chung Gim Lian, who is a director and key management of Raffles K12 Sdn. Bhd. and Raffles Iskandar Sdn. Bhd., the company said in a filing to SGX.

Bail for each officer was set at S$30,000, Raffles Education said. 

Affin Bank loan

The arrests were related to the CAD’s and Monetary Authority of Singapore’s investigation into a potential offence under the Securities and Futures Act in relation to loan facilities from Affin Bank to Raffles K12 and Raffles Iskandar.

“The company understands that the Investigations are still ongoing and none of the current officers have been charged for any offence, nor do the arrests necessarily signify that there will be any further actions taken or charges in the future,” Raffles Education said, adding the directors weren’t subject to any conditions other than routinely attending the CAD’s offices to assist in the investigations. 

The directors can travel outside Singapore if they obtain clearance first, the filing said.

Directors remain in roles

“The company further understands that the current officers have cooperated, and will continue to fully cooperate with the authorities,” the filing said. 

Raffles Education said the directors would continue to serve in their roles. 

In a late August filing to SGX, Raffles Education said Affin Bank had filed writs related to alleged defaults from the borrowers’ failure to make certain repayments. The company said it had already been in talks with the bank on variation to the repayment terms, even before the writs were filed.

The company said in August it had appealed to Affin Bank for an extension of a six moratorium on the payments due to the impact of the Covid-19 pandemic, and “was given to understand” the moratorium would be extended. The borrowers believed Affin Bank did not intend to follow through with court proceedings and the writs were a strategy to obtain improved terms, the company said in August, adding it viewed the legal proceedings were “unmeritorius.” The writs have since been withdrawn.

The writ was received on 27 May and the board was notified on 28 May,