Chong Meng Tak failed to disclose his financial gain from acquisition, leading to charges of cheating
A former director of Singapore O&G (SOG), Christopher Chong Meng Tak, has been convicted of two counts of cheating in relation to a S$1.5 million payment that he concealed from the board during the acquisition of Dr Joyce Lim Teng Ee’s medical business. The deal, which involved the acquisition of Dr Lim’s medical practices by SOG for S$26.5 million, was completed in 2015 without Chong disclosing his personal financial gain from the transaction.
Chong, 64, had introduced Dr Lim to SOG and was involved in the acquisition negotiations. After the deal was completed, Dr Lim paid Chong S$1.5 million, issued to a company owned by Chong, Paromay. The payment was described as an “introduction fee” and for various consultancy services provided by Paromay. Chong did not disclose this potential conflict of interest to the SOG board, a critical omission given his position as a director and chairman of the audit committee.
Chong’s actions came to light when the Corrupt Practices Investigation Bureau intervened, leading to his resignation from the SOG board in 2017. Chong’s defence claimed he abstained from voting on the acquisition due to his connection with Dr Lim, but this was contradicted by the testimony of other board members, who were unaware of any financial dealings between Chong and Dr Lim.
District Judge Carol Ling found that Chong intentionally concealed his conflict of interest to ensure the acquisition proceeded and that he would receive the S$1.5 million. Chong’s failure to disclose his financial interest in the deal prevented the board from properly assessing the acquisition and its full cost. He is scheduled to return to court for sentencing in May.
