Why is it that Informatics always kena this kind of trouble???
Who's from Informatics? Do you think that so many of such cases can
ruin the reputation of the school? If it does, then I fear that
those students might not get employed so easily next time...
Informatics founder Wong Tai fined S$240,000 for
overstating profit
By Johnson Choo, Channel NewsAsia | Posted: 01 September 2006 1956
hrs
Informatics founder Wong Tai has been fined $240,000 for
overstating the profits of the company for three quarters.
But he has been spared a custodial sentence, which could have seen
him jailed for up to 14 years.
District Judge Valerie Thean said Wong was not jailed as she
believes the offence was not committed with dishonesty, but was
more a case of what she described as "aggressive accounting".
Wong Tai was found guilty of two charges under the Securities and
Futures Act.
He had overstated the profits of Informatics by a total of S$4.18
million for the three quarters ending 31 December 2003.
In mitigation, his lawyer K Shanmugam highlighted the fact that
when Wong Tai was CEO, the private education services provider did
not commit any similar offence.
He said it was only after Wong gave up his executive positions in
Informatics that the company adopted a different revenue
recognition policy.
This led to fees collected from students upon registration to be
entered as revenue for the immediate financial quarter.
This move contravened the usual prudent accounting practice of
recognising these monies over a period of 12 months, since the
education services would have to be provided over that time.
In passing sentence, the judge said while Wong Tai was not
dishonest, the financial report presented was not kept in
accordance to accepted accounting practices.
And this, the judge says is important, as Singapore positions
itself as a financial centre.
Informatics co-founder and former CEO Ong Boon Kheng is also being
charged with three counts of giving misleading statements and 1
count of issuing a misleading profit warning under the Securities
and Futures Act.
He's expected to claim trial, and his case will be heard next
Monday. - CNA/ch
