Unraveling the Tuaspring Scandal

In a courtroom bombshell, it was revealed that Olivia Lum, the founder of Hyflux, and former CFO Cho Wee Peng conspired to downplay critical details about the failed Tuaspring project. Testimony from former corporate communications head, Winnifred Heap Ah Lan, painted a striking picture on August 19.

Secrets Behind Closed Doors

The prosecution argued Lum deliberately withheld vital information regarding Hyflux's business risks to maintain a facade of success after securing a major water project. Their gamble led to the company's collapse, leaving approximately 34,000 investors—who collectively invested a staggering $900 million—empty-handed.

Draft Manipulations and E-Mail Revelations

Initial drafts of a press release revealing Hyflux's preferred status for the Tuaspring project included explicit mentions of an integral 350MW power plant. However, as drafts evolved, critical references to electricity sales vanished. Heap's emails indicated that changes were guided by Lum and Cho, revealing a clear intention to conceal potential downsides.

The Press Release: A Game of Hide and Seek

Heap admitted to receiving instructions to 'play down' the energy element and focus on Hyflux's strengths. In a chilling note, she stated, 'significant changes would have been directed by Olivia and Wee Peng,' indicating a top-down approach to information management.

The Media's Role and Bank Anxieties

An email from journalist Robert Clow in March 2011 flagged concerns from banks about uncertain cash flows tied to the energy sales model. When asked for comments, Lum's response was chillingly evasive—'Just give no comment,' she advised, reinforcing suspicions about a broader cover-up.

A Testimony Under Fire

As the trial unfolded, Heap faced intense cross-examination from Lum's attorney Senior Counsel Davinder Singh. Their exchanges revealed the difficulties in recalling events from over 15 years ago, yet Heap maintained that the e-mail evidence was crucial for her recollections.

Stay Tuned: The Trial Continues!

As the court proceedings progress, the revelations keep getting more explosive. This case not only raises questions about corporate governance but also reveals the darker sides of investor relations and public communication. What will come next in this unfolding drama? Stay tuned!