The price of China Gaoxian Fibre Fabric Holdings is down by almost 50% as it resumes trading from suspension today.
The shareholders of China Gaoxian Fibre must be in agony. What can you do when the ex-CEO refuses to come to Singapore for questioning by CAD?
Nothing, absolutely nothing.
17 September 2013
Further to the Company’s announcement on 12 September 2013, China Gaoxian Fibre has forwarded to the Commercial Affairs Department of the Singapore Police Force (“CAD”) the relevant documents that it has, as well as urged Mr Cao Xiangbin (“Mr Cao”) to attend the meeting requested by CAD in Singapore scheduled for today.
However, Mr Cao informed the Company that due to his health condition and work commitments, he would not be able to travel to Singapore for the proposed meeting.
China Gaoxian has informed CAD of the same and CAD has further requested Mr Cao to meet them on a rescheduled date. The Company will convey the further request to Mr Cao and also urge him to cooperate with the CAD.
12 September 2013
Further to the Company’s filing of its report with the Commercial Affairs Department of the Singapore Police Force (“CAD”) on 22 August 2013 (“CAD Report”), China Gaoxian Fibre received a written notice from CAD requesting for:-
(a) documents relating to the Group’s banking and accounting records for the period from 1 September 2009 to 31 December 2011;
(b) records relating to the Group’s New Production Facilities and the Office Property; and
(c) the presence of Mr Cao Xiangbin to assist in the investigation since the matters raised in the CAD Report took place when he was the Executive Chairman and Chief Executive Officer of the Company.
The Company has informed Mr Cao of CAD’s request and will also be providing CAD the relevant documents that it has on the above. However, as previously announced by the Company on 3 July 2012, the Company has on 31 May 2012 lodged a report with the PRC Public Security Bureau with regard to the missing accounting books and records and the shortfall in the cash balances for the financial year ended 31 December 2010 of the Company’s PRC subsidiaries and is still waiting for the outcome of the aforesaid investigations.
23 August 2013
As mentioned in the Circular, the Special Auditors appointed by the Audit Committee were concluded that there are some material discrepancies in the affairs, finances and corporate governance of the Company and its PRC subsidiaries.
As part of the conditions imposed by the SGX-ST for Resumption of Trading, the Audit Committee has on 22 August 2013 lodged a report with the Commercial Affairs Division of the Singapore Police Force on potential breaches of the Securities and Futures Act (Cap. 289 of Singapore) arising from the aforesaid discrepancies highlighted in the Special Auditors’ report.