CHARTERED AMMUNITION INDUSTRIES PTE LTD (Loss of investment)

Mr J. B. Jeyaretnam asked the Minister for Finance how much has been lost by the investment of Chartered Ammunition Industries Pte Ltd (a subsidiary of Singapore Technologies) of $1,600,000 in Sino-Singapore Medical Disposables (Pte) Ltd.

The Minister for Finance (Dr Richard Hu Tsu Tau): Mr Speaker, Sir, Chartered Ammunition Industries Pte Ltd (CAI) invested $2 million for a 47% share in Sino-Singapore Medical Disposables (SSMD) (Pte) Ltd in November 1995. In May 1997, CAI filed a court petition to wind up SSMD to recover an over-due debt of $4.5 million. On 4th July 1997, liquidators from KPMG Peat Marwick were appointed. The extent of CAI's losses arising as a result of this investment has yet to be determined.

Mr Jeyaretnam: May I ask what study was made of this Sino-Singapore Medical Disposables (Pte) Ltd before Chartered Ammunition Industries decided to go into it?

Dr Richard Hu Tsu Tau: I would assume that CAI would have done a proper evaluation of the investment before they proceeded. Whether it goes wrong subsequently is not something that I am in a position to judge at this point.

Mr Jeyaretnam: Would the Minister say whether any reports have been made to the Police of embezzlement of the company's monies by employees after the Chartered Ammunition Industries went into the company?

Dr Richard Hu Tsu Tau: I am not aware of this.