The funds may have been paid out on the instructions of JLC partner, Ong Su Aun, Jeffrey, and might have been unauthorised.
Allied Technologies has instructed its counsel, Rajah & Tann Singapore LLP, to urgently lodge a report with the Singapore Police Force and the Law Society of Singapore following a breach by JLC Advisors LLP which failed to release the balance escrow funds amounting to $33.15m, a filing with the Singapore Exchange (SGX) revealed.
JLC entered into an escrow agreement with Allied Technologies on October 2017 but has not been able to give back the money despite repeated demands for repayment from the law firm since March 2019.
“This is notwithstanding that at all material times, JLC’s managing director, Ong Su Aun, Jeffrey, had repeatedly represented to the company that the release of the escrow funds would be forthcoming, and had never once stated that the escrow funds were missing, that it had already been paid out or that JLC would not comply with the company’s request to release the escrow funds in accordance with the escrow agreement,” Allied Technologies’ CEO and executive director Leow Wee Kia Clement highlighted.
Allied Technologies has also revealed that it has received a letter on JLC’s letterhead stating that the funds of $33.4m deposited by the company with JLC have been purportedly paid out from the escrow account, and that JLC is still investigating. That said, JLC noted that it has reasons to believe the said funds were paid out on the instructions of its partner, Ong Su Aun, Jeffrey, and "might have been unauthorised."
“The letter also stated that JLC has lodged reports with relevant authorities. The company notes that the amount stated as held by JLC on escrow is also incorrect,” Leow said.
Under the escrow agreement, the authorised joint signatories for any disbursement of funds from the escrow account with JLC comprise both executive director Low Si Ren, Kenneth and independent director Lim Jin Wei.
“Low and Lim Jin Wei have individually confirmed to the board that, other than pursuant to the company's aforementioned demand of 23 March 2019 to JLC, they have not given any instructions to JLC, either verbally or in writing, for release of the amount of the balance sum of $33.15m,” Leow highlighted. Under the escrow agreement, any instructions for disbursements of funds are required to be in writing.
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