Darco Water Technologies Limited designs, fabricates, assembles, and installs engineered water systems for industrial applications. The Group also services and maintains product water and wastewater systems.
In November 2010, Darco Water announced that suspected fraud by Taiwan subsidiary ex-senior staff amounting to TWD186.20m (S$8.1m) Darco suspected financial account manipulation by former General Manager, Admin Manager and Accounting Manager of Taiwan subsidiary. The staff were charged with fraud, breach of trust and misappropriating company funds. Sixteen suppliers were also charged for complicity. False contracts (payments to sub contractors, false expense claims, consultancy fees, etc.) were created with the help of third parties and funds stolen as a result of the payment of these invoices. The fraud was taking place for 6-7 years. These staff were convicted in Taiwan. This branch also received additional tax charges and penalties in connection with the fraud. The accounts were subject to numerous qualifications in FY09-15 and a change in auditors. The stock is still listed, but is operating around break-even level and is illiquid.
Financial PR Pte Ltd: Darco Water suspects fraud by Taiwan subsidiary ex-senior staff amounting to NT$186.20 million (approx. S$8.09 mil.), 22 Nov 2010
Darco Water Tech: Annual Report, 28 Feb 2008