Sembcorp's disclosure of China unit's troubles falls shortby TAY PECK GEK
On Friday night, Sembcorp Industries (SCI) disclosed that its China joint-venture company, Sembcorp Nanjing Suiwu (SNS), had been fined S$10 million last quarter for illegal discharge of waste water in China.
Further, a civil claim settlement had been reached with the local authorities, with the agreement expected to be finalised next month.
SCI added in the regulatory filing that its share of the fine and cash settlement for both the criminal charges and civil claims amounts to a
total of S$54 million, which has been fully provided for as of last September.
The timing of the announcement warrants scrutiny.
News that the China water treatment unit had been slapped with a record 50 million yuan (S$9.8 million) fine had already surfaced online on Jan 8 - with over a dozen China websites carrying it - or almost
10 days before SCI's announcement.These websites noted that the errant company could
face another whopping 470 million yuan in civil claims arising from its illegal discharge of wastewater.
SCI's statement followed queries from The Business Times, which had received a tip-off on Friday on a China news report about the case.
Source: Business Times
https://www.businesstimes.com.sg/opinio ... alls-short
It's all about "how much you made when you were right" & "how little you lost when you were wrong"