SINGAPORE (Sept 16): Pek Lian Guan, the CEO and executive director of Tiong Seng Holdings, is being probed by the Corrupt Practices Investigation Bureau in connection with certain staff loan transactions.
In a filing to SGX on Sept 16, the company revealed that Pek, who has worked in the construction company since 1990, was interviewed by CPIB on Sept 12.
Tiong Seng is one of the largest and most established construction companies in Singapore. It was previously in the news for its push to adopt pre-fabrication construction methods as a way to improve labour productivity that has dogged the sector.
Besides him, Tiong Seng’s project director Pay Teow Heng was also interviewed by the CPIB on Sept 11.
According to Tiong Seng, the interviews were in connection with certain staff loan transactions entered into by the company’s wholly-owned subsidiary, Tiong Seng Contractors.
Both Pek and Pay are out on bail.
The company notes that investigations are on-going and no charges have been filed.
Thus, it says both Pek and Pay are to continue with their roles to “ensure business continuity” and the company’s board will “reassess its position where appropriate in due course”.
Just on Sept 6, the company announced that its Tiong Seng Contractors had won a $287 million contract from JTC Corporation to build an industrial building at Ang Mo Kio Street 64/65.
See: Tiong Seng awarded $287 mil contract by JTC
And on Aug 27, the company announced it has won a $130.5 million contract to build a hotel at Club Street, bringing its construction order book to some $753 million, to be fulfilled by 2023.
See: Tiong Seng secures $130.5 mil contract to build hotel using PPVC method
On Aug 8, Tiong Seng reported 2Q earnings for the quarter ended June 30 2019 of $1.4 million, up 25.7% y-o-y, on revenue of $80.5 million, up 44% y-o-y.
Year to date, the company’s share price has dropped by 25% to close at 21 cents on Sept 16.
