Ex-Cordlife CEO Tan Poh Lan. 4 board members arrested for potential breaches in cord blood disclosure
Source: Yahoo News
SINGAPORE -- Former group chief executive Tan Poh Lan and four board members of Cordlife have been arrested over potential breaches of the company's disclosure obligations regarding the mishandling of cord blood units.
Those arrested alongside Tan include acting chairman Ho Choon Hou, independent directors Yeo Hwee Tiong and Titus Jim Cheong Tuck Yan, and non-independent non-executive director Chow Wai Leong. All five individuals are currently out on bail.
The private cord blood bank faced public scrutiny after the Ministry of Health revealed on 30 November last year that seven of its storage tanks for cord blood units had been exposed to temperatures exceeding acceptable limits.
This incident resulted in the damage of cord blood units belonging to at least 2,150 clients, with another 17,050 potentially affected. It was later discovered that Cordlife's board was made aware of temperature irregularities in one of its tanks back in February 2023.
In a bourse filing on Friday (22 March), Cordlife said that it had received a notice from the Commercial Affairs Department (CAD) and the Monetary Authority of Singapore (MAS) on 19 March, requiring documents and information related to police investigations into an offence under the Securities and Futures Act.
Cordlife said it has produced some of the documents listed in the notice.
"The company understands that the offence is in connection with potential breaches of the disclosure obligations of the company in relation to the irregular temperatures of a certain cryogenic storage tank of the company, which was first disclosed by the company in its announcement dated 30 November 2023," Cordlife added.
The company's chief financial officer, Thet Hnin Yi, has been asked to assist with the investigations but has not been arrested.
The CAD and MAS issued a notice on 19 March requiring four company directors who are not based in Singapore to attend interviews on 2 April in connection with ongoing investigations.
These directors are independent director Joseph Wong Wai Leung, non-independent non-executive director Zhai Lingyun, non-independent non-executive director Chen Xiaoling, and non-independent non-executive director Yiu Ming Yiu.
Cordlife said, "At the time of this announcement (22 March), the Company has received undertakings from all the Directors, Ms Tan Poh Lan and Ms Thet Hnin Yi, to inform the board of the ongoing Investigations and subsequent developments."
Tan resigned in October 2023, citing personal interests, before the case became public in November that year. The company announced on 19 February that Yiu Pang Fai would be its next group CEO.
Tan's last day with the company was to be 31 March 2024, Cordlife had said last year.
Cordlife added, "Given that the current board has been overseeing and providing guidance on the ongoing work undertaken by the company to investigate and address the lapses identified by the Ministry of Health in relation to the company's Singapore operations, the majority of the board is of the view that it would be in the interests of the company for all directors to continue serving on the board."
However, it was disclosed that Zhai and Chen disagreed, as they believed that their fellow directors who had been arrested and released on bail were not suitable to remain on the board.
Cordlife said, "The board will continue to consider and assess the suitability of all directors to continue serving on the board, pending the development of the investigations,"
It added that, depending on how the investigation evolves, the board will also consider the possibility of appointing new independent directors to serve as additional checks and balances for the company.
The company confirmed that the group's operations will continue to operate as usual.