SINGAPORE — Cordlife's board of directors has lodged a police report on April 17 over potential wrongdoings, amid an internal probe.
Processes at the cord blood banking company have been in the spotlight after it was revealed on Nov 30, 2023, that cryopreserved CBUs (cord blood units) in seven of its 22 storage tanks were exposed to suboptimal storage temperatures. In one of the seven tanks, 2,200 cord blood units were rendered unsuitable for stem cell transplants.
Cordlife said in the filing: " Based on the preliminary findings of internal investigations conducted by an external consultant engaged by the COI (the Committee of Inquiry, which are still ongoing) and the information available, the COI is of the view that it has uncovered preliminary evidence of potential wrongdoings involving mostly former employees of the group in connection with the Tank A incident."
In a bourse filing on April 18, the company said it had convened a COI to conduct internal investigations into why about 2,200 cord blood units in Tank A were damaged.
In the filing, the board said the police report was made without two directors — Zhai Lingyun and Chen Xiaoling. They are nominee directors of Nanjing Xinjiekou Department Store, which has a 20.3 per cent stake in Cordlife.
The company added that it will offer its full co-operation to the relevant authorities for investigations in connection with the police report.
The Straits Times has contacted the police for more information.
As it stands, damage to 7,500 cord blood units from two tanks and a dry shipper has been confirmed.
Five remaining tanks that store about 14,000 cord blood units have been deemed low-risk by health authorities, and further testing to generate more statistically significant results are set to be ready in one year's time.
This timeline has been contested by international cord blood banking experts who said that it can be done in 8 to 10 weeks, but Cordlife maintained that the one-year timeline is based on the current testing capacity for qualified labs here that have the expertise for this type of testing.
Group CEO Ivan Yiu said that in the meantime, shareholders of the company and potential investors should exercise caution when dealing in the shares of the company.
"They should consult their stockbrokers, bank managers, solicitors, or other professional advisers if they have any doubt about the actions they should take," he said in the filing.
He added that the company would update its shareholders and the investing public of material developments.
This article was first published in The Straits Times. Permission required for reproduction.
