SINGAPORE — The courtroom has been abuzz as Dr Goh Jin Hian, the former CEO of New Silkroutes Group (NSG), and his associate Kelvyn Oo Cheong Kwan faced trial beginning 4 February 2024. The prosecution is alleging a conspiracy to artificially inflate the company’s share price, a scheme that spanned several months.
Background of the Case
Dr Goh, 57, who also has a medical background, and Oo, 55, are accused alongside former finance director William Teo Thiam Chuan and GTC Group’s sole director Huang Yiwen of 132 charges related to false trading offences. Their activities allegedly aimed to boost the share price of NSG, a publicly listed company on the Singapore Exchange since 2002, particularly during its transition into the healthcare sector.
Details of the Allegations
- Dr Goh and Oo each face 31 counts of conspiring to create a misleading appearance of NSG’s share price.
- Additionally, Dr Goh faces another eight charges for actions intended to create such a misleading appearance.
- The conspirators are alleged to have manipulated the market between 26 February 2018 and 27 August 2018.
The Strategy Behind NSG’s Share Price Manipulation
The prosecution alleges that NSG’s management was under pressure to maintain a high share price, a necessity for the company’s strategy of using its shares as currency for acquisitions. Deputy Public Prosecutor Suhas Malhotra noted that a declining share price threatened to undermine lucrative deals, including acquisitions of medical clinics and related companies.
Evidence Presented
Among the most damning pieces of evidence are WhatsApp chats revealing the discussions among Dr Goh, Oo, and Teo about pushing up the share price. Communications suggested a coordinated effort to meet target prices, ensuring that NSG could fulfil its financial commitments during crucial negotiations.
Prosecution’s Claims
In his opening statement, DPP Malhotra described the scheme as a “sophisticated, well-coordinated and effective” initiative aimed at falsely inflating NSG’s market appearance. He cited various instances from their chats suggesting that without intervention, the share price would have closed significantly lower.
What Happens Next?
The trial continues with further testimonies and evidence. If found guilty, Dr Goh and his co-defendants could face imprisonment of up to seven years and hefty fines reaching S$250,000 for each charge.
This high-profile case shines a spotlight on corporate governance and accountability in Singapore’s investment landscape, especially as the nation continues to focus on maintaining a transparent and fair market environment.