Fu Yu Corporation completes probe into supply chain unit

The investigation covered several key areas, including the 2021 acquisition of FYSCS (formerly Avantgarde Enterprise Pte Ltd).

Fu Yu Corporation Limited has completed an internal investigation into its wholly owned subsidiary, Fu Yu Supply Chain Solutions Pte Ltd (FYSCS), following concerns over past transactions and management conduct.

The probe, led by external legal and risk advisors, included a Maxwellisation process and resulted in an executive summary now under review by the company’s reconstituted board.

The investigation covered several key areas, including the 2021 acquisition of FYSCS (formerly Avantgarde Enterprise Pte Ltd), potential misuse of company resources, and a multi-million-dollar commission payment.

According to the report, Fu Yu’s acquisition of FYSCS was supported by legal, valuation, and financial due diligence carried out by independent professionals. No evidence was found to suggest the company’s board was misled or improperly influenced during the deal.

Whilst a senior trader, Frank Zhang, left the company two months after the acquisition, he continued providing services under a new contractual arrangement through his own firm.

The report also examined the use of a corporate email account by a non-employee and a series of expense claims filed by Victor Lim, who held the role of Director of Strategy at FYSCS during the period in question.

Lim’s expense claims—totalling under $10,000—were processed through FYSCS’s standard internal approval system. The report did not reach a firm conclusion on whether the expenses were entirely business-related, noting limited documentation.

Another area of review involved a commission payment of nearly US$3m linked to an incentive agreement between FYSCS and KWW Consultancy, a firm owned by an FYSCS employee.

Although the commission was reassigned to another third party, Arc Intl Energy, the report confirmed the underlying trade was executed and profitable. The rationale behind the routing of the payment remained unclear, but investigators did not find evidence of wrongdoing.

Fu Yu’s board, reconstituted in June 2025, has not taken legal action to date but is continuing to assess the findings and seek further legal advice. The company has stated that it will provide updates on any material developments.