Ex-Pheim fund manager tells court she didn’t give order to buy UET shares
By CHEW XIANG 03 September 2009
(SINGAPORE) Lawyers for fund manager Tan Chong Koay and his billion-dollar Malaysian fund Pheim Asset Management are moving to impeach a key witness - who dramatically appeared in court on Tuesday.
The witness, Tan Keng Lin, a former fund manager at Pheim’s Malaysia office, was called by the defence and testified yesterday that she had not been acting independently when she told the Securities Commission of Malaysia (SCM) in 2006 that she had placed orders to buy Singapore-listed United Envirotech (UET) shares from Dec 29 to Dec 31, 2004.
Under examination by defence lawyer Senior Counsel Michael Hwang, Ms Tan said: ‘I’m not the one who gave the order. . . This statement (to SCM) was prepared when I wasn’t able to think independently or make an independent decision, so I was actually made to say this . . . by my employer, Dr Tan,’ she said.
The Monetary Authority of Singapore (MAS), represented by Senior Counsel Cavinder Bull of Drew & Napier, is arguing that the UET trades contravened Section 197(1)(b) of the Securities and Futures Act by creating a false and misleading appearance in UET shares. MAS is suing Dr Tan and Pheim - represented by Foo Maw Shen of Rodyk & Davidson - for civil penalties.
Dr Tan and Pheim argue that the trades were bona fide commercial transactions. Part of their defence is that it was Ms Tan, rather than Dr Tan, who had given the orders for the allegedly infringing trades.
But Ms Tan said yesterday she had been given the wrong impression that since she had signed off on the relevant trading slips, she was responsible for the trades even though she had not given the broker the order. ‘I went to the (SCM) interview with the impression that since I signed most of the trading slips, I should bear the responsibility,’ she said.
That impression came about as a result of ‘private conversations’ and a ‘private dinner’ with Dr Tan, she said, although she said she had felt ‘shocked and uncomfortable’ about the arrangements.
After further examination, Mr. Hwang said late yesterday afternoon that he wanted to apply to the court to impeach Ms Tan because of her inconsistent testimony. He said the defence team had not been aware of what she would be saying before she took the stand and so needed time to prepare an impeachment application.
The court had earlier been told that Ms Tan - now working as an analyst in Hong Kong - had been asked but had declined to come to Singapore to testify for the defendants, as she apparently did not want to get involved in the matter.
But she suddenly appeared in court on Tuesday after MAS arranged to fly her to Singapore on Monday night, the High Court was told yesterday. She was then called at the last minute as a witness for the defence.
The hearing continues today in the High Court before Justice Lai Siu Chiu.
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Defence moves to impeach own witness
Ex-Pheim fund manager tells court she didn’t give order to buy UET shares
By CHEW XIANG
03 September 2009
(SINGAPORE) Lawyers for fund manager Tan Chong Koay and his billion-dollar Malaysian fund Pheim Asset Management are moving to impeach a key witness - who dramatically appeared in court on Tuesday.
The witness, Tan Keng Lin, a former fund manager at Pheim’s Malaysia office, was called by the defence and testified yesterday that she had not been acting independently when she told the Securities Commission of Malaysia (SCM) in 2006 that she had placed orders to buy Singapore-listed United Envirotech (UET) shares from Dec 29 to Dec 31, 2004.
Under examination by defence lawyer Senior Counsel Michael Hwang, Ms Tan said: ‘I’m not the one who gave the order. . . This statement (to SCM) was prepared when I wasn’t able to think independently or make an independent decision, so I was actually made to say this . . . by my employer, Dr Tan,’ she said.
The Monetary Authority of Singapore (MAS), represented by Senior Counsel Cavinder Bull of Drew & Napier, is arguing that the UET trades contravened Section 197(1)(b) of the Securities and Futures Act by creating a false and misleading appearance in UET shares. MAS is suing Dr Tan and Pheim - represented by Foo Maw Shen of Rodyk & Davidson - for civil penalties.
Dr Tan and Pheim argue that the trades were bona fide commercial transactions. Part of their defence is that it was Ms Tan, rather than Dr Tan, who had given the orders for the allegedly infringing trades.
But Ms Tan said yesterday she had been given the wrong impression that since she had signed off on the relevant trading slips, she was responsible for the trades even though she had not given the broker the order. ‘I went to the (SCM) interview with the impression that since I signed most of the trading slips, I should bear the responsibility,’ she said.
That impression came about as a result of ‘private conversations’ and a ‘private dinner’ with Dr Tan, she said, although she said she had felt ‘shocked and uncomfortable’ about the arrangements.
After further examination, Mr. Hwang said late yesterday afternoon that he wanted to apply to the court to impeach Ms Tan because of her inconsistent testimony. He said the defence team had not been aware of what she would be saying before she took the stand and so needed time to prepare an impeachment application.
The court had earlier been told that Ms Tan - now working as an analyst in Hong Kong - had been asked but had declined to come to Singapore to testify for the defendants, as she apparently did not want to get involved in the matter.
But she suddenly appeared in court on Tuesday after MAS arranged to fly her to Singapore on Monday night, the High Court was told yesterday. She was then called at the last minute as a witness for the defence.
The hearing continues today in the High Court before Justice Lai Siu Chiu.
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