Hall of Shame

China Sky Chemical Fibre (CSCF SP)

In November 2011, SGX ordered a special audit of the company in connection with land deals and related party transactions dating back to 2006.  In 2013, the special audit found no signs of fraud, but conclusions queried (deal documents were not available, etc).[1]

Singapore’s MAS fines the CEO for misleading statements and the shares were suspended for four years 2011-15.[2]

2011-2015 accounts had qualified audit opinions, partly as accounting record were held by Singapore’s CAD. In August 2016, shares were again suspended after winding up proceedings were started against subsidiaries in China.[3]

October 2016 - China Sky Chemical Fibre filed a lawsuit in Singapore against Zheng Kai Su for fraudulent / unauthorised use of group's funds. Zheng was also accused of fraudulent/unauthorised use of group's assets for securing loans of about RMB1.07bn.

[1] SMU: China Sky special audit reveals lapses in public disclosures but no serious fraud, 8 Jul 2013

[2] MAS: Former China Sky CEO Huang Zhong Xuan pays civil penalty of $2.5 million and offers to surrender 10% of his shareholdings in China Sky, 12 Feb 2015

[3] Business Times: China Sky Chemical Fibre says winding-up proceedings of subsidiary not verified, 30 Aug 2016

[4] China Sky: Application for extension of time, 26 Jan 2017

SAL: Legal Document, 9 May 2012

China Sky: Annual Report 2010