Tiong Seng CEO, project director out on bail amid graft probe involving ‘staff loan transactions’

18-Sep-2019 Intellasia | StraitsTimes | 6:02 AM Print This Post

Mainboard-listed Tiong Seng Holdings said on Tuesday (September 17) that its chief executive and executive director Pek Lian Guan and project director Pay Teow Heng are on bail amid a corruption probe.

This is in relation to alleged offences under Section 6(b)1 of the Prevention of Corruption Act (Chapter 241) of Singapore, the construction firm said in a regulatory filing.

Pek and Pay were interviewed by the Corrupt Practices Investigation Bureau (CPIB) on September 12 and September 11 respectively over “certain staff loan transactions” entered into by the group’s unit Tiong Seng Contractorsthe company behind projects such as Sentosa Integrated Resorts and St Regis Hotel.

“The board is unable to provide further details at this time as the CPIB’s investigation is ongoing,” according to the filing.

Section 6(b) of the Prevention of Corruption Act (Chapter 241) penalises a person for corruptly offering gratification to any agent as inducement or reward for acts relating to his principal’s affairs or business, or the show of favour or disfavour to any person in relation to his principal’s affairs or business.

A person found guilty of contravening Section 6(b) will be fined a maximum of $100,000 or imprisoned for a maximum of five years, or both.

Tiong Seng is one of Singapore’s big construction groups and has been cited as a successful family business.

The history of the group dates back three generations to Pek Lian Guan’s grandfather who first ventured ino the scrap collection and pig rearing business. His son, Pek Ah Tuan, and his brothers set up lifting and transport services firm Peck Tiong Choon in 1955. In 1959, Pek Ah Tuan set up Tiong Seng Contractors in partnership with Lee Tuan Chay from Song Hup Seng, a firm specialising in piling and excavation work.

In April 2010, the holding company, Tiong Seng Holdings, was listed on the main board of the Singapore Exchange.

The group helped to build Singapore landmarks such as the Resorts World Sentosa Integrated Resort, Capella Hotel in Sentosa, and Parkroyal on Pickering. It also had a hand in commercial, institutional and industrial landmarks such as One Marina Boulevard, Marina Bay Financial Centre, Home Team Academy, NTUC FairPrice Hub and JTC [email protected]

According to the group’s website, CEO Pek Lian Guan was appointed director of Tiong Seng Contractors in 1993, and later deputy managing director in 1997. He also advises as a member of various productivity and green councils in Singapore.

Pay joined Tiong Seng Contractors as a project engineer in 1992. He was promoted to project manager in 1993 and to director in 1998. He manages the tender process for projects and oversees various types of construction projects that Tiong Seng Contractors undertakes in Singapore, from civil engineering to the construction of buildings.

Tiong Seng Contractors had in May walked off with one of the top prizes at the Building Construction Authority (BCA) awards ceremony. It was the top winner of the Build Environment Leadership Award, and received the pinnacle Platinum Star for its “sustained leadership, excellence and innovation in Singapore’s built environment industry”.

For the three months ended June 30, Tiong Seng Holdings posted a 26 per cent rise in net profit to $1.40 million for the second quarter, from $1.1 million a year ago. Earnings per share stood at 0.31 cent, up from 0.25 cent the previous year.

Revenue for the quarter totalled to $80.5 million, 44 per cent higher than $55.9 million a year ago. This was due mainly to a drop in work performed for the construction segment, and lower revenue recognition for its property development segment.

Tiong Seng Holding shares last traded on September 9 at $0.21, down 0.5 cent or 2.3 per cent.

https://www.straitstimes.com/business/companies-markets/tiong-seng-ceo-project-director-on-bail-amid-corruption-probe

 


Category: Singapore

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