CPIB hauls Multi-Chem CEO, COO in for questioning; stock hits circuit breaker

SINGAPORE – IT distribution firm Multi-Chem: AWZ 0% reported on September 17 that its CEO, chief operating officer and two senior staff were questioned by the Corrupt Practices Investigation Bureau (CPIB). Multi-Chem's shares experienced a significant decline at the opening bell, falling over 40% in early trading, or S$1.84 to S$2.50.

This precipitous drop prompted the Singapore Exchange's (SGX) circuit breaker mechanism, which imposes a 10% price limit and a five-minute pause for a cooling-off period when a security undergoes abrupt price fluctuations.

The company's audit and risk management committee (ARMC) disclosed in a regulatory filing to SGX that CEO Foo Suan Sai and chief operating officer Han Juat Hoon were interrogated by the anti-corruption agency. Both executives were compelled to provide bail and surrender their passports and mobile phones to the CPIB. The ARMC, consisting of the group's independent directors, was informed of the situation by Han.

In their statement, the committee clarified that they are not directly involved in the ongoing matter under investigation by the CPIB.

Two higher-ranking sales employees at the company were also questioned by the CPIB, though it remains unclear if they were similarly obligated to surrender their passports or mobile devices. As part of the ongoing probe, CPIB officers visited the company's premises and seized various documents. These included certain financial statements of the group spanning multiple years to the present, employee claim documents related to personnel, a record from a vendor, and an agreement with the same vendor.

Committee member Steven Chong informed the ARMC that they are currently seeking additional information from the executives regarding the interviews, the nature of the investigations, and other actions undertaken by the CPIB.