Former Pokka International CEO and 2 Kimly directors charged over disclosure offences
File photo of a gavel.
SINGAPORE: The former chief executive of Pokka International and two directors of coffee shop operator Kimly were charged in court on Friday (Nov 12) over disclosure offences, the police said in a news release.
Former Pokka International CEO Ong Eng Sing, 46, was charged with three counts of failing to disclose his indirect interest in a transaction with Pokka International.
Chia Cher Khiang and Lim Hee Kiat were each charged with one count of failing to notify the Singapore Exchange (SGX) of Kimly's acquisition of drinks company Asian Story Corporation (ASC), which was announced on Jul 2, 2018.
It was alleged that the acquisition was an interested person transaction, which should have been disclosed under the SGX Catalist Rules but was not, said the police.
Lim, who was the executive chairman of Kimly, was further charged with one count of failing to disclose his indirect interest in the acquisition.
According to court documents, Lim had partial beneficial ownership of ASC.
Chia was offered S$50,000 bail while Lim was offered S$70,000 bail.
It was alleged that Ong, who was a director in Pokka International and Pokka Corporation (Singapore), had partial beneficial ownership of ASC.
Ong had allegedly failed to disclose his interest to Pokka International and Pokka Corporation on three occasions when ASC entered into transactions with the two Pokka entities.
According to court documents, he had failed to disclose his interest sometime in 2010 during a distribution agreement between Pokka International and ASC.
Ong had also allegedly failed to disclose his interest during a manufacturing agreement between the two companies dated Aug 1, 2016.
Sometime around November to December 2017, the two companies agreed on a distribution framework, where ASC would supply Etika products to Pokka International. The latter would distribute the products in the general trade channel in Singapore.
The former CEO allegedly failed to disclose that ASC was a company he had partial beneficial ownership of, according to court documents.
For failing to disclose the acquisition was an interested person transaction, they may be jailed up to seven years, fined up to S$250,000, or both.
For failing to disclose their interest with the company, offenders may face a jail term of up to 12 months or a fine of up to S$5,000.
