On 25 June 2021, SGX Regco issued a notice of compliance (NOC) to ecoWise Holdings (ecoWise). ecoWise had been left with just one independent director – Mr Er Kwong Wah, the lead independent director – and two executive directors, with the latter fighting with each other. Two independent directors had earlier resigned in May 2021. In the NOC, SGX Regco required the company to appoint at least two... Source

First published in Business Times on 9 July 2021 Recent developments in the local market involving Sakae Holdings and ecoWise Holdings have illustrated just how important it is that companies have strong internal controls in place, as well as a robust internal audit function that can detect gaps and weaknesses which could compromise a company’s financial position. In addition to ensuring strong internal audit, companies serious about enhancing their governance should consider adding a relatively new function within their senior ranks – a chief integrity officer whose job would be to spearhead integrity programmes and ensure an ethical culture is institutionalised within the company. In Sakae’s case, external auditor Deloitte & Touche had said last year it could not ob

SIAS is seriously concerned with the developments at ecoWise and is aware of shareholders’ concerns regarding the issues and the disagreements between Mr Lee Thiam Seng (“Mr Lee”), who is the Chief Executive Officer, and Mr Cao Shixuan (“Mr Cao”), who is the Deputy Chief Executive Officer. It is regrettable that matters have been allowed to deteriorate to this level, resulting in failure of internal controls and effective communication within the company. This situation should not have been allowed to arise in the first place. However, SIAS notes that Mr Lee, Mr Cao together with the lead independent director, Mr Er Kwong Wah have stated that they would fully cooperate and work with each other to address the SGX RegCo Directives in a timely manner. In the circumstance, SIAS urges