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Friday, November 20, 2020 – 3:46 pm
UPDATED Fri, Nov 20, 2020 – 4:53 pm
DBS is seeking to end the Ninth Global Healthcare Pte Ltd (NGHPL) scandal, co-founded by Singaporean cousins Terence and Nelson Loh.
The bank has filed an application for liquidation with the Singapore High Court.
In a statement on Friday, Terence Loh said that he understands that DBS is requesting that insolvency professionals at accounting firm RSM be appointed as joint liquidators of NGHPL.
NGHPL is believed to have owed DBS millions of dollars, The Straits Times (ST) reported.
DBS declined to comment on the matter when approached by The Business Times (BT).
NGHPL is the Singapore subsidiary of Novena Global Healthcare Group (NGHG), incorporated in the Cayman Islands, which has been in the limelight since Ernst & Young (EY) filed a police report alleging that its unauthorized firms had appeared in NGHG’s financial statements.
The police are not the only ones investigating matters related to the duo. In August, the Singapore Corporate and Accounting Regulatory Authority told BT it would take enforcement action after it was discovered that entities linked to the Lohs had not filed annual returns. These entities included NGHPL and Novena Life Sciences Pte Ltd.
RSM was recently appointed a special accountant for NGHG by the latter’s oversight committee. Mr. Terence Loh said this appointment was “made at the behest of all five NGHG lending banks, including DBS.”
He believes that a possible liquidation of the Singapore unit “will not necessarily result in the disappearance” of the parent company.
“I will continue to collaborate with RSM until any liquidation occurs and I will assist the designated liquidators to recover value,” Terence Loh said in the statement.
In October, he legally severed all business ties with his cousin and former business partner, Mr. Nelson Loh.
Under the deal, Nelson Loh would transfer all of his shares in NGHG, Dorr Global Healthcare International Pte Ltd, and Rock Star Advisors Pte Ltd to his cousin for S $ 1, and then step down as a director of the three entities.
Meanwhile, Terence Loh would transfer his shares in Bellagraph Nova Pte Ltd (BN Sg), incorporated in Singapore, to his cousin for Singapore $ 1 and step down as director.
He remains a director of NGHG at the holding and NGHPL level.
On Friday, Terence Loh said he understands that RSM has contacted potential investors in the parent company and that some of these investors are conducting due diligence on NGHG.
He noted that he has been assisting RSM to facilitate NGHG’s financial transaction discovery, documentation and equity participation, and to accelerate the corporate recovery of the group’s key businesses “to rescue value for all stakeholders.”
In September, the NGHG board established a special committee, which does not include the duo, to investigate EY’s allegations that the audit signatures on NGHG’s accounts were forged and to “restructure and examine their affairs.”
Regarding the EY allegations and other discrepancies that came to light recently on NGHG, Terence Loh said on Friday that he feels “deeply betrayed” by his cousin, who has left Singapore and “seems to have no intention of fixing this terrible mess we are in. ” with”.
This year, the Lohs formed the Bellagraph Nova Group (BN Group), with Evangeline Shen. The new group, which is run primarily by Shen and is competing for the Newcastle United soccer club, has come under scrutiny after it was found to have tampered with photos of former US President Barack Obama in its marketing materials.
Mr. Terence Loh said last month that he was not assigned a specific role at BN Sg and that he was unaware of the BN Group entities. He also resigned from BN Group then.
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