Noble Group under probe

Singapore authorities suspect statements false and misleading

SINGAPORE: Commodity trader Noble Group Ltd and one of its units are being investigated by the authorities in Singapore for suspected false and misleading statements and breaches of disclosure requirements under the Securities and Futures Act and potential non-compliance with accounting standards.

The probe is being conducted by the Commercial Affairs Department (CAD), the Monetary Authority of Singapore (MAS), and the Accounting and Corporate Regulatory Authority, the agencies said in a statement.

The trader’s shares are suspended this week amid its planned debt-for-equity restructuring. An external spokeswoman for the company declined to comment.

“CAD and MAS have directed Noble Group Ltd and NRI to produce documents relating to the preparation of Noble Group’s financial statements, following a thorough review of other relevant information, including information referred to the authorities by the Singapore Exchange Regulation Pte Ltd and other third parties,” the three agencies said. NRI refers to Noble Group unit Noble Resources International Pte Ltd.

Noble Group – which is to be taken over by its senior creditors should the revamp be finalised – has been dogged for years by claims that its accounts have been unreliable, especially in relation to the valuation of gains on some long-term contracts.

Those accusations have routinely been denied by the trader and its executives, who’ve stood by the integrity of the book-keeping. The statement from the investigating agencies did not give details.

The Accounting and Corporate Regulatory Authority (ACRA) “has notified NRI’s board of directors that ACRA has made findings of suspected breaches of the Companies Act and has required the directors to furnish further information,” the agencies said.

“This follows an extensive review of the financial statements of NRI for the financial years ended Dec 31, 2012 to Dec 31, 2016.”

The Commercial Affairs Department, or CAD, is responsible for probing white-collar crime in the city-state.

“Anything involving Singapore’s CAD is very serious,” said Alex Turnbull, managing partner at Keshik Capital Pte Ltd.

“It’s good that they finally got round to taking a deeper look at this situation. I think the restructuring can still probably go through as creditors have agreed, but that should be no comfort to former management or directors.”

Chief among Noble Group’s critics who’ve questioned the accounts is Iceberg Research, run by a former company employee, Arnaud Vagner.

Another steadfast critic has been Michael Dee, a former senior managing director at Singapore state investment firm Temasek Holdings Pte Ltd, who said in August that there should be “a full, forensic accounting” of Noble Group’s books.

NRI is listed in the 2017 annual report as a subsidiary involved in the supply of industrial and energy products. — Bloomberg

Anything involving Singapore’s Commercial Affairs Department is very serious. Alex Turnbull