Second firm backs Goh Jin Hian's role on its board despite lawsuit

Dr Goh Jin Hian stepped down as New Silkroutes chief executive last Thursday but retained the chairman's role.
Dr Goh Jin Hian stepped down as New Silkroutes chief executive last Thursday but retained the chairman's role.

A second mainboard-listed company has backed 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.

New Silkroutes Group said yesterday that it regards Dr Goh - the company's non-independent non-executive chairman - as suitable to continue as director.

The nominating committee and the board noted that "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 a Straits Times report yesterday of a lawsuit brought by the judicial managers of insolvent marine fuel supplier Inter-Pacific Petroleum (IPP) against Dr Goh over his alleged breach of director's duties.

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

The suit, filed late last Friday night in Singapore's High Court, seeks to recover about US$156 million (S$212 million) with interest from Dr Goh for drawdowns of trade financing between June and July last year to fund alleged "non-existent or sham transactions".

New Silkroutes said in a filing to the Singapore Exchange (SGX): "The board understands that Dr Goh's lawyers, TSMP Law Corp, have exchanged correspondence with the judicial managers and detailed, with clear explanation, why there is no justifiable case against him.

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

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

The firm's nominating committee and board, with Dr Goh abstaining, reiterated that his "character and integrity remain suitable to continue as a director of the company".

They added that they believe 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 chief executive last Thursday but retained the chairman's role he took on in August.

He is assisting the Commercial Affairs Department over a possible offence under the Securities and Futures Act involving New Silkroutes. His passport has been retained.

In a late Monday night filing to the SGX, Cordlife Group also reiterated its support for Dr Goh as independent director while announcing that he had stepped down as chairman following news of the lawsuit.

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

Cordlife added that "the cessation of Dr Goh's role as chairman will allow (him) to continue ensuring that sufficient time and attention are given to the affairs of the company as an independent director".

New Silkroutes called for a trading halt yesterday morning but lifted it at 1.45pm. 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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A version of this article appeared in the print edition of The Straits Times on October 07, 2020, with the headline Second firm backs Goh Jin Hian's role on its board despite lawsuit. Subscribe