SINGAPORE, March 20 — Singapore’s efforts to become a global wealth hub have been thrust into the spotlight after an ultra-high-net-worth Chinese businessman, Zhong Renhai, sued four former employees for allegedly misappropriating S$74 million (RM246,2 million) from his Singapore-based companies.
According to Bloomberg, Zhong, the owner of liquefied petroleum gas trader Lee Fung International (LFI) and family office Panda Enterprise, has accused the former staff of orchestrating fraudulent transactions and fabricating financial documents over several years.
The alleged misconduct came to light in December 2023, prompting him to engage forensic accountants Alvarez & Marsal (A&M), who later concluded that millions had been misused.
Meanwhile, Straits Times reported that on March 14, the Singapore High Court upheld a worldwide freezing order — known as a Mareva injunction — against the four former employees and their British Virgin Islands entity, Singa Wealth, citing a “real risk of dissipation” of assets.
The judgment detailed various instances of “egregious dishonesty,” including falsified expense claims, unauthorised payments, and a fabricated MT103 Swift payment message meant to reflect a US$22 million transaction that never occurred.
Singapore has seen a surge in family offices, with numbers surpassing 2,000 by the end of 2024.
However, the case underscores concerns about governance within such entities, which often lack the regulatory oversight of traditional financial institutions.
The city-state has been increasing scrutiny on financial activity, especially after last year’s multibillion-dollar money laundering scandal.
The defendants have denied wrongdoing, claiming Zhong had authorised certain payments, but the court found no credible evidence supporting their claims.
