New Silkroutes backs Goh Jin Hian as chairman despite lawsuit

Dr Goh stepped down as New Silkroutes CEO on Oct 1, but kept the chairman role he took on in August. PHOTO: ST FILE

SINGAPORE - A second mainboard-listed company has stepped up to support Dr Goh Jin Hian's continued role on its board despite a lawsuit brought against him over an alleged breach of director's duties at another firm.

The nominating committee and the board of New Silkroutes Group said on Tuesday afternoon (Oct 6) that they are of the view that Dr Goh - who is the company's non-independent non-executive chairman - is suitable to continue as director as the action is a civil suit against Dr Goh and, based on legal advice of his lawyers, the allegations are without merit.

The healthcare and energy firm cited The Straits Times report on Tuesday of a lawsuit brought by the judicial managers of insolvent marine fuel supplier Inter-Pacific Petroleum (IPP) against Dr Goh for his alleged breach of director's duties.

Dr Goh, who is the son of former Singapore prime minister Goh Chok Tong, was a director of IPP from June 2011 to August 2019. IPP was placed under judicial management in September 2019.

"The board understands that Dr Goh's lawyers, TSMP Law Corp, has exchanged correspondence with the judicial managers and detailed, with clear explanation, why there is no justifiable case against him," said New Silkroutes in the filing.

"Dr Goh has been advised by his lawyers that the judicial managers' allegations are without merit both on the facts and on the law," it said.

"The board understands that Dr Goh has every confidence that he will be wholly vindicated when he defends himself in court," it added.

As such, the nominating committee and the board, with Dr Goh abstaining, said they continue in their support of Dr Goh, reiterating that his character and integrity remain suitable for a director of the company.

They also continue to believe that it is in the interest of the company and its shareholders that he remains as non-executive chairman.

Dr Goh stepped down as New Silkroutes CEO last Thursday, but kept the chairman role he took on in August.

He is assisting the Singapore Police's Commercial Affairs Department (CAD) into a possible offence under the Securities and Futures Act involving New Silkroutes, and has had his passport retained.

In a late Monday night filing to the Singapore Exchange, Cordlife Group also reiterated its support for Dr Goh as independent director on its board even as it announced he had stepped down as chairman following news of the IPP lawsuit.

Cordlife said its nominating committee and board, with Dr Goh abstaining, believe that he "has the character and integrity suitable to continue as ID of the company", and that it is in the best interests of the company that he does so "given his qualifications, expertise and experience".

Cordlife added that: "At this juncture, the cessation of Dr Goh's role as chairman will allow (him) to continue ensuring that sufficient time and attention is given to the affairs the company as ID".

New Silkroutes called for a trading halt on Tuesday morning, but lifted the halt at 1.45 pm. Its shares closed up 0.2 cent or 1.8 per cent at 11.3 cents.

Cordlife shares last traded at 36 cents on Sept 30.

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