KS Energy’s father and son duo Kris Wiluan and Richard Wiluan were taken into custody last week by the Commercial Affairs Department of the Singapore Police Force for questioning as part of investigations into a potential contravention of Section 197 of the Securities and Futures Act, Cap. 289.
Section 197 comprises two components. The first relates to doing anything that is intended or likely to create a false or misleading appearance of active trading, while the second relates to the manipulation of the market price of securities by way of transactions that do not involve a change in the beneficial ownership of those securities.
Executive chairman and CEO Kris Wiluan was released after his interview and posted bail while executive director Richard Wiluan was released without requiring bail.
KS Enery says both men are cooperating with investigations, and have granted police access to their electronic data, IT equipment and data storage devices from January 2015.
At the end of March, KS Energy’s independent auditor KPMG questioned its ability to continue as a going concern after it posted a loss of S$126.3m ($89.7m) for 2016. KPMG was most concerned about the company’s current liabilities substantially exceeding its current assets.