SGX asks SDAI to resolve internal control weaknesses

The report found concerns, including misuse of past fundraising proceeds.

SGX RegCo is requiring SDAI Limited to rectify internal control weaknesses arising from a Deloitte investigation.

The report found concerns, including misuse of past fundraising proceeds, suspected payroll irregularities, and purported unauthorised transactions.

Phase one of the findings on the payroll matter and unauthorised transactions had been concluded and announced last 21 July 2023.

In phase two, Deloitte noted a lack of procedures on the allocation, utilisation and reporting of the use of proceeds, resulting in late disclosures.

Deloitte noted the company reallocated placement proceeds, using 55% for working capital and just under 9% for new business, a significant shift from the previously announced 20% and 60% breakdown.

SGX RegCo will require the company to disclose material findings and remedial measures recommended by Baker Tilly Consultancy in the annual report for the financial year 2025.