SGX RegCo to investigate Eneco Energy Limited over listing rules breaches

Amongst these breaches is the non-disclosure of exploration permit expiry.

Eneco Energy Limited has been subjected to investigation of the SGX RegCo over listing rules breaches.

In an announcement, SGX RegCo said the company is reported to have three violations; the first of which is the non-disclosure of the expiry of its exploration permit.

Eneco Energy's subsidiary, Ramba Energy West Jambi's (REWJ) exploratory permit for the West Jambi concession expired in September 2016; however, the expiry was only reported in February 2021.

To secure a USD$2.88m bank guarantee for the extension of the permit. Eneco Energy's CEO Aditya Wisnuwardana Seky Soeryadjaya, referred hereafter as "DAS," appointed PT Mandiri Pratama Khatulistiwa (MPK), an Indonesian broker.

MPK was paid a total of US$2,877,500, which accounted for about 36.19% of the group’s cash balance at the material time (2018).

"The funds were transferred in two stages, a sum of US$2,832,633 was first transferred from the bank account of a subsidiary unrelated to the West Jambi concession to DAS’ bank account," aid SGX RegCo.

"Then a transfer of US$2,877,500 from that personal bank account was purportedly made to MPK," added SGX RegCo, citing findings from Deloitte & Touche Financial Advisory Services Pte. Ltd.

Deloitte was appointed as the independent reviewer for the case.

"Deloitte was unable to verify these transfers with the bank and MPK as the parties declined to be interviewed. The engagement of MPK and disbursement of funds did not comply with the group’s internal policies," SGX RegCo said.

To add, MPK also did not appear to be in the business of financial services.

Given the findings, Eneco will also be investigated over "internal control lapses involving the disbursement of funds as well as potential contraventions of Sections 157 and 199 of the Companies Act by DAS and the Company respectively," SGX RegCo said.