CAD arrests Cordlife ex-group chief and four director over alleged breaches of disclosure obligations

The investigation stemmed from potential breaches of disclosure obligations concerning irregular temperatures in a cryogenic storage tank

The Commercial Affairs Department (CAD) has arrested four directors of Cordlife Group, including its former group chief executive, who were later released on bail, the group confirmed.

The arrested individuals include Ho Choon Hou, acting chairman, non-independent non-executive director; Yeo Hwee Tiong, independent director; Cheong Tuck Yan Titus Jim, independent director; Chow Wai Leong, non-independent non-executive director; and Tan Poh Lan, former executive director and group chief executive officer. 

In a statement, the company announced that it is under investigation by the CAD and the Monetary Authority of Singapore (MAS). 

The investigation, initiated pursuant to Section 20 of the Criminal Procedure Code 2010 of Singapore, revolved around potential breaches of the Securities and Futures Act 2001.

The notice, dated 19 March, served by CAD and MAS, requires Cordlife to provide specific documents and information related to the investigations. Officers from CAD visited Cordlife's office on the same day to collect some of the requested documents.

The investigation stemmed from potential breaches of disclosure obligations concerning irregular temperatures in a cryogenic storage tank, initially disclosed by Cordlife in November 2023.

ALSO READ: MOH sets deadline for Cordlife to comply with regulations

The company also said Thet Hnin Yi, chief financial officer, has been requested to assist with the investigations but has not been arrested, placed on bail, or charged with any offence as of the date of the announcement.

Meanwhile, directors Joseph Wong Wai Leung, Zhai Lingyun, Chen Xiaoling, and Yiu Ming Yiu, who are currently based outside Singapore, have been summoned for interviews by CAD on 2 April.

Whilst the majority of the board believes it is in the company's interest for all directors to remain, Zhai and Chen argued that the arrested directors should step down.

“The board will continue to consider and assess the suitability of all directors to continue serving on the Board, pending the development of the investigations,” the group said.

It added that depending on the progression of the investigations, the board would contemplate appointing new independent directors to provide additional checks and balances for the company.

The company's operations will continue as usual despite the ongoing investigation.