SINGAPORE- Tan Poh Lan, the former Group CEO of Cordlife, was arrested along with four other directors as part of an ongoing investigation into the mishandling of cord blood units at the company. This development follows a police notice issued on March 19, 2024, by Singapore’s Commercial Affairs Department (CAD) and the Monetary Authority of Singapore (MAS), requiring documents and information related to potential breaches of the Securities and Futures Act.
The investigation stems from an incident in which Cordlife disclosed that some of its cryogenic storage tanks were exposed to temperatures above the acceptable limits, damaging cord blood units belonging to at least 2,150 clients. An additional 17,000 clients may have been affected. The company first revealed this issue on November 30, 2023.
According to the authorities, the arrests are linked to possible offences under Section 203 of the Securities and Futures Act, which mandates the continuous disclosure of critical information to approved exchanges like the Singapore Exchange. The law stipulates that any individual who intentionally or negligently fails to disclose necessary information may face legal consequences.
Cordlife has confirmed that all five individuals arrested, including Tan, Ho Choon Hou (acting chairman), and independent directors Yeo Hwee Tiong, Titus Jim Cheong Tuck Yan, and Chow Wai Leong, have been released on bail. Despite Tan’s resignation in October 2023 to focus on personal matters, she remains part of the investigation. Tan’s official departure from Cordlife was scheduled for March 31, 2024.
The company’s CFO, Thet Hnin Yi, has also been asked to assist with the investigation, though she has not been arrested.
The company’s CFO, Thet Hnin Yi, has also been asked to assist with the investigation, though she has not been arrested. Meanwhile, four directors currently based overseas are required to attend a police interview on April 2, including former chairman Joseph Wong Wai Leung, who stepped down earlier this year for personal reasons, and directors Zhai Lingyun, Chen Xiaoling, and Yiu Ming Yiu.
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In its response, Cordlife assured the public that it would cooperate fully with all regulatory authorities and keep its shareholders updated. While the investigation progresses, the company emphasized that its operations would continue as usual. Additionally, Cordlife expressed that the board of directors would remain in place, although some members felt they may not be suited to continue in their roles. The company’s majority of directors believe it’s in the company’s best interest for the board to remain intact for the time being.
Cordlife also noted that it would consider appointing new independent directors to strengthen checks and balances on the board. The company has requested the lifting of a trading halt it had imposed on March 14, 2024.
