SGX : exchange cannot do much about fraud

crazy monkey SG

Sept 23, 2005
SGX not the sole guardian of capital markets: Chairman
Pillay says exchange cannot do much about fraud unless whistle-blowers act

By Lee Su Shyan
COMPANIES CORRESPONDENT
THE chairman of the Singapore Exchange (SGX) rejected claims yesterday that the organisation had failed to do enough to prevent recent corporate wrongdoing.

Mr J.Y. Pillay said he sympathised with shareholders caught up in scandals such as those of China Aviation Oil (CAO) and Accord Customer Care Solutions (ACCS) but he emphasised that the SGX is 'not the only guardian of the capital markets'.

His remarks came during a question-and-answer session that was part of the stock exchange's annual general meeting.

Given the spate of scandals over the past year, it was no surprise that an out-of-pocket investor would have something to say.

The shareholder, who prepared a two-page statement, told Mr Pillay: 'I suffered losses in Informatics, CAO and ACCS. Luckily I do not have Citiraya shares. How much loss must I suffer from people's non-compliance, dishonesty and criminal acts before you take preventative measures?

'You owe investors a good job by tightening the screws to eliminate breaches so SGX will remain a safer place than a casino. I have left my nest egg in your hands.'

Mr Pillay gave one of his longest answers of the session: 'First of all...I sympathise with your losses. We are not the sole and entire guardian of the capital markets. We have a role to play to ensure listing rules are properly conceived and enforced.'

He said there are other 'organs of state' which come into the picture in relation to supervisory, regulatory and enforcement areas. He cited the code of corporate governance: 'It is promulgated by another government agency and implemented through the SGX, but we don't decide it or control the contents.'

The code is a voluntary one that gives guidance to listed companies on the composition of the board of directors, for example.

Mr Pillay said that when it comes to fraud, there is 'little the authorities can do unless matters come to their attention through whistle-blowers'. He added that he felt the scandals were likely caused by fraud or 'other violation of law. The law will enforce its verdict accordingly'.

Another question yesterday centred on SGX's aim of increasing retail participation above the current level where only one in eight retail accounts are active.

The question tied in with Straits Times reports that SGX wants to charge broking firms for access to live prices. If brokers pass the costs on, retail investors who trade over the Internet may think twice about trading.

SGX chief executive Hsieh Fu Hua said that even as such fees are levied in other countries, retail demand has also grown.

As SGX also won shareholder approval for a performance share scheme, it will cease to grant stock options.

crazy monkey SG

Former Singapore corporate pin-up boy charged with defrauding Nokia

Saturday September 24, 2005, 6:14 pm

SINGAPORE, (AFP) - A budding entrepreneur once hailed as the poster boy among Singapore's financial circles has been charged with padding repair bills to mobile phone-maker Nokia, a report said.

Businessman Victor Tan, 34, founder of mobile phone service firm Accord Customer Care Solutions (ACCS), faces 43 counts of conspiring to prepare "fictitious warranty repair claims of Nokia mobile telephones," the Straits Times said.

The charges centre on monthly bills totalling some 4.3 million Singapore dollars (2.56 million US) that were sent to Finnish-based Nokia last year for repairs of phones still under warranty. Many of the repairs were allegedly never carried out.

Similar charges were levelled against 11 other members of his firm on Friday, including former ACCS chief financial officer Yip Hwai Chong, 38, and ex-general manager Damien Ang, 35.

An alleged key member of the conspiracy, Tan was also accused of dishonest behaviour as a director of ACCS by not informing other board members of the fictitious repair claims.

Meanwhile, seven Nokia customer service centre managers have also been charged with creating false warranty repair jobs. Six have resigned or had their services terminated, while a seventh was suspended on Friday.

"Nokia is in discussions with the new management of ACCS to recover any fictitious warranty claims and invoices," the Straits Times quoted a Nokia spokesman as saying.

ACCS, which became a listed company in 2003, was a former darling among stock market punters, as was Tan, a former award-winning entrepreneur once lauded as one of Singapore's youngest chief executives.

Mr Victor Tan was named the Emerging Entrepreneur Of The Year. As CEO & Managing Director of Accord Customer Care Solutions Limited (ACCS), Mr Victor Tan saw the tremendous potential in the after-market services (AMS) business for mobile phones and set out to build a global local network through ACCS. Today, ACCS serves the top brands in mobile communication devices and high-tech consumer electronics products across 15 countries in the region. Under Victor Tans visionary leadership and management, ACCS was listed in March 2003 and is currently valued at a market capitalization of S$622 million. ACCS was voted Best Newly Listed Company in Singapore, Sixth Overall Best Managed Company in Singapore and the second Best Small Cap Company in Singapore in the Asiamoney 2003 poll.

crazy monkey SG

Accord Customer Care Solutions awarded BHQ status

DATE 01 Nov 2002

Accord Customer Care Solutions (ACCS), a leading after-market service provider for mobile communications in the region, has been awarded the Business Headquarters (BHQ) status by EDB.

The award bears testimony to ACCS' commitment in growing its regional businesses in the After-Market Services (AMS) industry and developing itself as a key global player through strategic initiatives spearheaded by its Singapore headquarters.

EDB Chairman Teo Ming Kian congratulated the company for its constant efforts to create innovative solutions from market needs and broadening its scope of service offerings to its customers.

He said that currently, some 6,000 multinational companies operate out of Singapore with 60 per cent of them locating their regional headquarters here.

"Singapore thus serves as their strategic base from which they plan and manage their regional operations. They cover a broad spectrum of business functions, ranging from manufacturing, distribution and marketing to test-bedding and R&D," Mr Teo added.

Mr Victor Tan, CEO of ACCS, commented: "We have grown rapidly over the last three years to become the market leader and forerunner in the regional AMS industry.

"With the BHQ award and lower corporate taxation rate, we will now be in an even stronger position to further establish ourselves as the preferred AMS partner in the Asia- Pacific region."

ACCS provides a fully-integrated range of services in the management of after-sales customer care to more than 16 partners such as Alcatel, Motorola, NEC, Nokia, Siemens and Sony Ericsson.

From its headquarters in Singapore, ACCS operates the largest network of 55 service centres in 15 cities across 11 countries. It employs more than 850 people and has plans to further its presence in key cities in China.

Lowclassman SG

Award-winning entrepreneur once lauded as one of Singapore's youngest chief executives? Money comes in dirty ways? I believe so.... to run business in singapore is damn difficult and have to pay many expensive overhead.

shade343 SG

Sigh...Victor Tan was from my school.... Sad Sad His teachers still believes he is innocent though....

ndsef SG

Which is why I think it is easier to make money in the 60s when the system was not in place or rather system still has many loopholes. So many businessmen (whom I shall not name here) have made big bucks through unscrupulous ways and today, some are listed companies CEOs!

Too bad for Victor Tan though, he may be trying to pull a fast one but was caught in a seamless net that was used to cover up the loopholes.

Actually, from the experience I had running my own business before, there are some things that businessmen do that seems unscrupulous on the surface but still have to be done to ensure survivability of the business as a whole.

Lets hope this Victor Tan can overcome this terrible period and recover to be become a successful businessman.

crazy monkey SG

the fat fark is going to jail Laughing

Cindyfeh SG

I don't think anyone with criminal records can become a director again.

shade343 SG

Hopefully, his teachers will give testimony about his upright and morale character....

crazy monkey SG

no use still go to jail Laughing

and wat do the teecher know ? maybe he trade porn tape and playboy in school

ndsef SG

There are ways round that system. He can put the shares under his wife's name, or relative's name.

Hopefully, the yellow ribbon project will be able to help in abolishing this ruling of non acceptance of directorships for bankrupts and ex convicts. In fact, many of these people have the brains to make it big, just that they used their brains for the wrong purpose.

This is evident in the no of ex convicts in USA who are in jail for hacking and released from jail to join the federal govt and pte organizations that are developing softwares to prevent hackers.

Lowclassman SG

If he had cheated millions of dollars; he deserved to go to jail. After all, he had also enjoyed once in his life time as an entrepreneurship award by the ''reputated organisation of Singapore''. After serving jail sentence, he still can live in luxury life.

Lowclassman SG

crazy monkey SG

he can be slimming poster boi for jean yip when he come out Laughing

ndsef SG

Hey Lowclassman, why your posts is always in trio? Noticed that a few times liao…