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Mon, Nov 16, 2020-11: 31 am
SHARES of Starburst Holdings, which designs and installs ballistic rebound protection systems, fell on Monday after it revealed its co-founders are out on bail amid an investigation by Singapore’s anti-corruption watchdog.
Last Thursday, the Corrupt Practices Investigation Office (CPIB) interviewed CEO Edward Lim Chin Wah, CEO Yap Tin Foo, Chief Financial Officer (CFO) Wu Guangyi, and Senior Project Manager Josiah Lawrence Ng Eng Long.
This was in relation to the wholly owned subsidiary of the Catalist-listed firm, Starburst Engineering.
Mr. Lim, Mr. Yap and Mr. Ng are out on bail, Starburst said at a bag presentation Sunday night. He did not indicate the CFO’s status in relation to the investigation.
Mr Yap’s passport has been withheld, while Mr Ng’s passport has been requested to be provided on Monday.
As CPIB’s investigation is ongoing, the board said it cannot provide further details at this time.
The board, with Mr. Lim and Mr. Yap reclining, believes that the three men released on bail should continue their responsibilities and duties in operating the group’s businesses.
This is to ensure business continuity, he added. The board will re-evaluate your position when appropriate, in due course.
Starburst noted that CPIB’s investigation is unrelated to the group’s current projects and consequently does not affect the group’s business and operations.
The Singapore-based group’s clients include law enforcement, armed forces, security agencies and civil authorities in Southeast Asia and the Middle East, according to its website.
Starburst Engineering closed a S $ 40.9 million contract, the group’s largest to date, in March to build a two-year firearms training facility in Southeast Asia.
In July, the subsidiary also won a S $ 13.1 million contract to upgrade a tactical training simulation facility in Southeast Asia, by designing, supplying and installing ballistic protection works.
Mr. Lim and Mr. Yap co-founded the Starburst business in 1999 and have been instrumental in its development and growth. They are majority shareholders in the company and own more than 66 percent of the combined Starburst, according to Shareinvestor data.
Last Thursday, Starburst shares fell 1.2 percent or 0.5 Singapore cents to close at 40 cents. They fell further on Friday, shedding 6.3 percent or 2.5 cents to finish at 37.5 cents.
On Monday, the counter plunged as much as 68 percent to 12 cents around 9.15am, according to Shareinvestor data. It was trading at 15 cents at 10.55 a.m., down 60 percent or 22.5 cents from the previous close. About 9.4 million shares had changed hands by then.
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