Cordlife's former group CEO, 4 board members arrested amid CAD probe

SINGAPORE - Cordlife’s former Group CEO Tan Poh Lan and four board members have been arrested in connection with potential breaches of the company’s disclosure obligations in relation to the irregular temperatures of a certain cryogenic storage tank.

The listed private cord blood bank has been under scrutiny after the Ministry of Health made public on Nov 30, 2023 that seven of its tanks storing cord blood units were exposed to temperatures above acceptable limits.

However, it later emerged that Cordlife’s board was alerted to temperature lapses in one of its tanks in February 2023.

Cord blood units belonging to at least 2,150 clients were damaged, with 17,050 others potentially affected.

In a bourse filing on the wee hours of March 22, the company said it received a notice on March 19 from the police’s Commercial Affairs Department (CAD) and the Monetary Authority of Singapore (MAS) requiring documents and information in connection with police investigations into an offence under the Securities and Futures Act. Cordlife has produced some of the documents listed in the notice.

Along with former group CEO Tan Poh Lan, four directors have been arrested in connection with the investigations and released on bail. They are acting chairman Ho Choon Hou, independent directors Yeo Hwee Tiong and Titus Jim Cheong Tuck Yan, as well as non-independent non-executive director Chow Wai Leong.

Chief Financial Officer Thet Hnin Yi has been asked to assist with investigations. She has not been arrested, the company said.

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The CAD and MAS also issued a notice on March 19 requiring four directors of the company, who are not based in Singapore, to attend interviews in connection with the investigations on Apr 2. They are independent director Joseph Wong Wai Leung, non-independent non-executive director Mr Zhai Lingyun, non-independent non-executive director Ms Chen and non-independent non-executive director Mr Yiu Ming Yiu.

The company has received undertakings from all the directors, Ms Tan Poh Lan and Ms Thet Hnin Yi, to inform the board of the ongoing investigations and subsequent developments, said Cordlife.

“Given that the current board has been overseeing and providing guidance on the ongoing work undertaken by the company to investigate and address the lapses identified by the Ministry of Health in relation to the company’s Singapore operations, the majority of the board is of the view that it would be in the interests of the company for all directors to continue serving on the board,” said Cordlife.

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However, it disclosed that Mr Zhai and Ms Chen disagree as they hold the view that their fellow directors who have been arrested and released on bail are not suitable to remain on the board.

A day earlier in a bourse filing on Mar 21, the company said its shareholders had requested the removal and appointment of several directors amid the company’s mishandling of cord blood units.

“The board will continue to consider and assess the suitability of all directors to continue serving on the board, pending the development of the investigations,” said Cordlife.

It added that, depending on how the investigations evolve, the board will also consider the possibility of the appointment of new independent directors, to serve as additional checks and balances for the company.

Cordlife said the group’s operations will continue as usual.

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This article was first published in The Straits Times. Permission required for reproduction.