03/10/2020

Son of former PM Goh Chok Tong in CAD probe

Update 8 Feb 2024: Goh Chok Tong's son Goh Jin Hian found liable for losses of US$146 millions
Goh Jin Hian, CEO of Singapore's New Silkroutes Group Ltd, poses for pictures during an interview in Beijing, China, October 17, 2016. Picture taken October 17, 2016. REUTERS/Aizhu Chen (REUTERS / Reuters)

Singapore’s High Court has found Goh Jin Hian liable for $146 million in losses under his watch as director of a now-insolvent marine fuel supplying company, adding to the legal problems facing the son of former Prime Minister Goh Chok Tong.

Doing his duties “would have led him to realize that the company was being defrauded,” Justice Aedit Abdullah said in published remarks dated Jan. 24 on a petition involving Inter-Pacific Petroleum Pte. The defense argued there was no such breach or causation of loss, and regardless, the company qualifies for relief from liability under the companies act. “The financial position of the company was suspect and should have primed the defendant to look further and obtain a picture of the true state of the affairs of the company and monitor what was happening within it,” the judge said. “That was his duty as a director.” “Loss was caused to the plaintiff through the transactions and drawdowns which should not have been carried out and would not have been had the defendant performed his duties,” the judge said.

The development comes amid a number of scandals in the Asian financial hub known for its zero tolerance for corruption. A separate billion-dollar money laundering probe is already shining a light on fund flows from abroad and raising questions about loopholes that enabled an alleged criminal syndicate to accumulate massive amounts of wealth. Goh, 55, served as a director of Inter-Pacific Petroleum from 2011 to 2019, Channel News Asia reported. He was among four people charged last year with false trading offenses linked to investment holding company New Silkroutes Group Ltd. They are accused of creating a “misleading appearance with respect to the price” of its securities on 31 trading days between February and August of 2018. That’s equivalent to market manipulation.


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Former Singapore Prime Minister Goh Chok Tong's son is being sued for breaching director's duties during his time as director of Singapore marine fuel and cargo trader Inter-Pacific Petroleum (IPP).

Goh Jin Hian, who was IPP's director from 2011 to 2019, is being sued by its judicial managers Deloitte & Touche for over $156 million including interest, «The Straits Times» reported earlier this week (behind paywall). The firm's largest creditors Maybank and Societe Generale, who are owed $88.3 million and $81.3 million respectively, are funding the suit, which was filed last Friday.

According to court documents, the $156 million was from drawdowns of trade financing between June and July 2019, which banks alleged were «non-existent or sham transactions.» The firm lost its operating license earlier this year and was placed under judicial administration amid financial stress. The losses at SocGen resulted in the departure of its co-heads of trade and commodities finance for Asia-Pacific.


Goh Jin Hian sued by Inter-Pacific Petroleum's judicial managers over US$156 million in losses
Dr Goh, 52, was a director at Inter-Pacific Petroleum from June 28, 2011, to Aug 20, 2019 PHOTO: BT FILE

Judicial managers of insolvent Inter-Pacific Petroleum seek to recover over $212m: Court papers.

The judicial managers of insolvent marine fuels supplier Inter-Pacific Petroleum (IPP) have sued the company's former director, Dr Goh Jin Hian, over US$156 million (S$212.6 million) in losses it sustained due to his alleged breach of director's duties, according to court documents seen by The Straits Times.

The suit against Dr Goh, who is the son of former prime minister Goh Chok Tong, was filed late last Friday night (Oct 2) in Singapore's High Court by LVM Law Chambers, which represents Deloitte & Touche, IPP's judicial managers.


SGX queries Cordlife on how it assessed Goh Jin Hian's suitability to stay on as chairman
The Cordlife board noted that Dr Goh always displayed a high level of professionalism, integrity and strong leadership during board discussions and meetings. PHOTO: BT FILE

Cordlife Group responded on Monday morning (Oct 5) to a query from the Singapore Exchange on its announcement last week that its chairman and independent director Dr Goh Jin Hian is able to fulfil his duty to the company despite being under police probe.

A separate mainboard-listed company, New Silkroutes Group, had announced on Sept 30 that Dr Goh, who was then still its CEO, and finance director William Teo are assisting the Commercial Affairs Department (CAD) with investigations.

CAD is looking into a possible offence under the Securities and Futures Act, believed to involve false trading and market rigging in past share buybacks and stock purchases.


Goh Chok Tong maintains silence as his son gets sued over S$212m losses by Inter-Pacific Petroleum JMs
While Dr Goh is confident that the claims against him are without merit, his famous father remains mum on the case despite being vocal on social media when it comes to various issues

Former Singapore Prime Minister Goh Chok Tong is maintaining his silence even after news broke that his son, Goh Jin Hian, is being sued over losses of about S$212 million by the Judicial Managers (JMs) who were appointed to act on behalf of Inter-Pacific Petroleum (IPP).

Dr Goh joined IPP – a Singapore bunker supplier and bunker craft operator – as the firm’s executive director in when he felt an itch to move out of the healthcare sector in 2011. He served as executive director from 2011 to 2014 and became a non-executive director from 2014 – the year he joined Digiland, which was later renamed New Silkroutes Group (NSG).

IPP began to go under last year after it was charged over bunkering malpractices in a landmark court case. The firm went defunct after the Maritime Port Authority (MPA) revoked its licenses and the company filed for judicial management at the High Court on 16 Aug. Four days later, Dr Goh left the firm.


Goh Jin Hian steps down as Cordlife chairman
Dr Goh Jin Hian also had his passport retained as a result of an unrelated probe involving New Silkroutes Group. PHOTO: ST FILE

Dr Goh Jin Hian has stepped down as chairman of mainboard-listed Cordlife Group after news broke that he is being sued by the judicial managers of a failed marine fuels supplier over US$156 million (S$212.6 million) in losses due to alleged breach of director's duties.

"In view of the above, in order to devote more time to his personal affairs, Dr Goh will be stepping down as chairman of the board with immediate effect, but will continue to serve as ID (independent director) of the company," Cordlife announced in a filing with the Singapore Exchange just before midnight on Monday (Oct 5).

Vice-chairman and independent director Ho Choon Hou has been appointed acting chairman with immediate effect, it added.


Son of former PM Goh Chok Tong assisting in CAD probe
Goh Jin Hian, former CEO of New Silkroutes Group. (PHOTO: Reuters/Aizhu Chen)

Healthcare provider New Silkroutes Group said on Wednesday (30 September) that its executive director and former chief executive officer Goh Jin Hian, as well as finance director William Teo, are assisting the Commercial Affairs Department (CAD) with investigations.

The Business Times reported the company as saying that it was responding to queries raised by the Singapore Exchange (SGX) regarding ongoing investigations by CAD into a possible offence under the Securities and Futures Act. The group understands the alleged offence is false trading and market rigging pursuant to Section 197 of the Securities and Futures Act, in view of past share buy-backs and acquisitions of shares.

He is also involved in a possible legal action on a separate matter, for breaches of director's duties at Inter-Pacific Petroleum (IPP), reported The Straits Times.


New Silkroutes Group under CAD probe for possible breach of Securities and Futures Act
New Silkroutes was asked by CAD and MAS to provide certain information and documents for the probe, said CEO Goh Jin Hian.PHOTO: ST FILE

The Commercial Affairs Department has launched an investigation into mainboard-listed investment holding company New Silkroutes Group over a possible offence under the Securities and Futures Act of Singapore.

New Silkroutes was asked on Sept 24 by the CAD and the Monetary Authority of Singapore to provide certain information and documents for the probe, Dr Goh Jin Hian, New Silkroutes' chief executive and executive director, told the Singapore Exchange on Friday night (Sept 27).

One of the company's directors and certain senior management and former management executives are also assisting with the CAD's probe, he added.


Businessman Goh Jin Hian could face legal action for breaches of director's duties
Doctor-businessman Goh Jin Hian has not been accused of fraudulent conduct, The Straits Times understands. The allegations are more akin to negligence when carrying out his duties as a director at marine fuels supplier Inter-Pacific Petroleum

Doctor-businessman Goh Jin Hian could face legal action for breaches of his director's duties at a firm that has lost its operating licence and has been placed under judicial management amid financial stress.

The Straits Times understands that Dr Goh, who is the son of former prime minister Goh Chok Tong, has not been accused of fraudulent conduct.

The allegations are more akin to negligence when carrying out his duties as a director at marine fuels supplier Inter-Pacific Petroleum (IPP).


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