Advanced Systems Automations ex-CEO claims unauthorised funds transfers were for unpaid salaries

[SINGAPORE] Advanced Systems Automations (ASA) on Thursday (Jul 24) said that its former chief executive Seah Chong Hoe claimed that the three cheques he issued to himself from the company’s bank account were for unpaid salaries he was owed.

However, the board has not found records in the company’s books documenting that the three cheques Seah issued were to discharge outstanding salaries owed to himself, ASA said.

This was in response to queries from the Singapore Exchange about unauthorised fund transfers and a police report the group lodged against Seah and its former director, Mohd Sopiyan Bin Mohd Rashdi, for “potential offences”.

The two had bypassed the board in making themselves bank signatories of the company’s Maybank bank account and Seah had made unauthorised transfers of company funds, the group said previously.

ASA said that it is currently reviewing the matter to determine if Seah’s claims are genuine and that it is taking legal advice.

It added that the funds transfers do not have material impact on its financial position as the amounts have already been recorded as liabilities in its balance sheet.

With effect from Jul 21, Seah resigned as director of three of the group’s Malaysian subsidiaries: Emerald Precision Engineering, Yumei Technologies and Yumei Real Estate Investment Trust. He also resigned as managing director of Yumei Technologies.

The counter finished Thursday 14.3 per cent or S$0.001 higher at S$0.008, before the announcement.