SINGAPORE: Former Prime Minister Goh Chok Tong’s son, Goh Jin Hian, is reportedly considering appealing a High Court ruling that found him responsible for breaching his director’s duties at troubled bunker supplier firm Inter-Pacific Petroleum (IPP).
High Court Justice Aedit Abdullah found Goh liable for breach of director’s duties, statutory duties, and losses suffered by the insolvent marine fuel supplier amounting to US$146 million (S$196 million), plus interest.
The 55-year-old, who served as a director of IPP from June 28, 2011, to Aug 20, 2019, was accused by liquidators of “sleepwalking through his time as a director.”
The lawsuit aimed to recover US$156 million in losses, alleging that Goh failed to prevent drawdowns in trade financing between June and July 2019 for alleged non-existent or sham transactions.
The trade financing, totalling US$146 million, originated from IPP’s largest creditors – Malayan Banking (Maybank) and the Singapore branch of Societe Generale (SocGen).
Additionally, US$10.5 million was drawn from SocGen’s facility for IPP’s bunkering operations during a period of alleged balance-sheet insolvency.
Interestingly, Goh held 36 directorships simultaneously between 2017 and August 2019.
Justice Aedit Abdullah emphasized the director’s duty to monitor the corporation’s affairs for the protection of stakeholders and noted that Goh breached the fiduciary duty by not considering the interests of the creditors, especially when IPP was facing financial difficulties.
However, the judge rejected the claim for the loss of US$10.5 million, stating that IPP did not sufficiently demonstrate how this claim arose from the breach in question.
The court found that Goh played an active role in the company’s management and had a duty to be fully apprised of its affairs, especially its cargo trading business, which constituted a significant portion of IPP’s activities.
During the trial, Goh’s lack of knowledge about IPP’s cargo trading business was highlighted. The judge noted that Goh’s failure to act on red flags and pursue further inquiries indicated a breach of duties, causing the losses claimed by IPP.
This ruling comes after Goh and three others faced 132 charges related to false trading offences in September 2023, marking a tumultuous period for the former director.
Goh has since told ST that he is “considering an appeal against the judgment and will discuss this with my lawyers.”
Meanwhile, the IPP lawsuit judgment further adds to the legal challenges faced by the former PM’s son, who had already been charged under the Securities and Futures Act for alleged share price manipulation in a separate case.