By Sherry Qin
Shares of Hotel Properties fell in early trading after the company said its billionaire managing director had been issued a notice of arrest and faced questioning related to a corruption investigation in Singapore.
Shares were down 4.4% at 3.69 Singapore dollars (US$2.79) early Friday, putting the company on track for its biggest one-day loss in more than two years.
Hotel Properties said in a stock exchange filing on Friday that Managing Director Ong Beng Seng had been asked by Singapore’s Corrupt Practices Investigation Bureau to provide information regarding interactions with the city-state’s transport minister. No charges have been filed against Ong, who was given a notice of arrest and who posted bail, the company said.
Hotel Properties added that Ong was traveling overseas beginning Friday and plans to surrender his passport to the CPIB upon his return. “Mr. Ong is cooperating fully with CPIB and has provided the information requested,” the company said in its statement. It added that an internal committee had determined that Ong “continues to be suitable to carry out his duties and responsibilities as managing director.”
The statement comes after the CPIB on Wednesday said it was interviewing Transport Minister S. Iswaran as part of an “investigation into a case uncovered by the CPIB.” Iswaran, who has been placed on leave while the agency conducts its probe, hasn’t been accused of wrongdoing.
Hotel Properties has a portfolio of dozens of hotels and resorts across 15 countries, including in the United Kingdom, Italy, Indonesia, South Africa and Singapore.
Write to Sherry Qin at [email protected]
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