© Reuters. FILE PHOTO: Ng Yu Zhi (R), a director of Envy International Buying and selling, arrives on the State Court docket in Singapore April 20, 2021. REUTERS/Edgar Su
By Chen Lin
SINGAPORE (Reuters) – Singapore corporations accused of being concerned in a $1.1-billion bogus nickel buying and selling scheme must be positioned in liquidation as there was no enterprise to be preserved, interim judicial managers at accounting agency KPMG have stated in a doc seen by Reuters.
Authorities within the metropolis state have implicated Ng Yu Zhi, a former managing director of buying and selling firms Envy International Buying and selling (EGT) and an inactive agency, Envy Asset Administration, within the fraud, one of many greatest in Singapore.
Final month, Singapore’s Excessive Court docket appointed KPMG because the interim judicial supervisor for the corporations, in addition to a associated firm, Envy Administration Holdings.
Ng faces greater than a dozen costs of dishonest and fraud introduced by prosecutors over the scheme, which the authorities say raised cash from traders to fund non-existent nickel offers.
Ng has not made any public touch upon the costs, following which he was faraway from his position as managing director of EGT. The businesses haven’t been charged.
“The businesses’ property…are grossly inadequate to satisfy the potential claims of the businesses’ collectors,” the interim judicial managers stated of their report, dated Tuesday.
“We suggest the businesses be positioned into liquidation and that applicable steps be taken as quickly as practicable to get better the property of the businesses.”
The report stated the scheme purportedly raised about S$1.5 billion ($1.13 billion) from almost 1,000 traders, with about S$731 million of this later withdrawn by traders.
Authorities have beforehand stated at the least S$1 billion was raised within the scheme.
The managers, led by Bob Yap, a KPMG accomplice in Asia, declined to touch upon the report on grounds of confidentiality.
Envy Group and Ng didn’t instantly reply to a request for remark.
The judicial managers’ report additionally concluded that not one of the funds from traders had been used for nickel trades, and that any funding returns had been prone to have come from investor funds.
Paperwork had been cast and a video of a nickel cargo inspection recorded to persuade traders of the existence of the purported buying and selling, the report added.
“We conclude that the goals of judicial administration can’t be achieved for any of the businesses. There’s, most importantly, no enterprise for the judicial managers to protect or proceed,” the managers stated within the report.
The managers will proceed investigations into the businesses’ affairs, they added.
Through the interval from July 2020 to February 2021, EGT made almost 1,200 fund transfers, totalling S$238.6 million, to 2 financial institution accounts, at the least one among them belonging to Ng, the report stated.
Ng made, or prompted to be made, a median of 150 transfers a month and as much as 41 transfers a day throughout this era, and individually acquired S$29 million in director’s charges, it stated.
Ng has declined to satisfy the KPMG officers, it added.
Apart from Ng, the report recognized Lee Si Ye as an final useful proprietor of the Envy Group. Lee didn’t instantly reply to a request for remark.
If convicted, Ng faces a jail time period of as much as seven years on the fraudulent buying and selling costs, whereas dishonest is punishable with as much as 10 years.