Danger signs - Fibrechem tumbles 40%

Fibrechem under investigation! The Board of Directors (“Board”) of FibreChem Technologies Limited (“the Company”) wishes to announce that certain difficulties have been encountered by the Company and its auditors, in respect of the finalization of the audit of the Group’s trade receivables and cash balances as at 31 December 2008. In addition, Mr James Zhang has offered to resign from his positions as Executive Chairman of the Board and Chief Executive Officer (“CEO”) with immediate effect and has also offered to cooperate fully with the Board. The Board has resolved to appoint Mr Xu Xu Hui, Executive Vice Chairman as the acting CEO of the Company. Mr Xu has been with the Group since April 1995 and is responsible for assisting the Executive Chairman and CEO in overall strategic planning, administration and public relations functions. He also oversees all production activities of the Group. The Company takes a serious view of these recent developments. In view of this, the Board has resolved to appoint nTan Corporate Advisory Pte Ltd as its independent investigator and financial advisor to carry out a thorough and comprehensive investigation into the transactions in question and to advise on the appropriate measures to be adopted by the Group to safeguard its assets, continue its operations smoothly and enhance values to all its stakeholders. In view of these pertinent major developments, the Board has also resolved to form an Independent Working Committee comprising the following non executive directors to oversee the investigation and business continuity: · Mr Ong Tiong Seng · Dr Chong Weng Chiew · Mr Lim Chin Tong · Ms Tan Sin Mui Trading in the shares of the Company will be suspended till further notice. The Company has taken some time to properly verify certain facts relevant to this issue and, for that reason, this announcement is being made at this time. The Company shall continue to make further announcements as and when appropriate on a timely basis. Further information can be obtained from Mr Nicky Tan of nTan Corporate Advisory Pte Ltd at 6327 8868.

Another Ferro and where did all the \'cash\' disappear to?

Just a crazy idea -- The concern now on the S-chips is whether the cash and cash equivalents is still in the companies. Can the Company just get the bank representative to verify the cash is still in the bank ? Just my 2-cent thought.

anyone has any latest rumour on Fibrechem?? I just imagine why or how could James Zhang be so bl... silly since he owns almost 35% of the company...why would he do such a thing?? If he is that stupid he could have sold out long time ago and get the hell out to Argentina or somewhere. I just cannot understand the motivation...I would if he was not a major shareholder and he just wanted to raid the coffers. But if he had plan this a long time ago to cook the books and report good numbers and thus send the stock flying..he should have sold out 6-12 months ago when the stock was still in the trading 3 times higher...this is a real mystery.. Another mystery is the SEC...where are they? Are they a watchdog or are they just there to be the undertaker after the fact????????????????????

Without more facts and clarity, it would not be fair to assume the CEO was defrauding the company. I would personally wait for more details before pointing a finger at him. After all, no one really knows what\'s happening at this point in time. As for a Singapore \"SEC\", there is no watchdog body in charge of strenuously auditing every single aspect of a Company\'s disclosure. This would in fact be too onerous. SGX ensures the listing of the companies and the Companies Act states the roles and fiduciary duties of Company Directors. It is more of a watchdog role, rather than a bloodhound. Even auditors merely sample to get assurance, there is no 100% check of the books. This would be technical impossible and consume too much time.

looks like we\'re on our own then...btw there is a CIMB report out on Fibrechem...and yes there is fraud allegation...our worst fears realised!! www.remisiers.org/research.html