The company&rsquo s nominating committee assesses that the pair are suitable to remain as directors

 

THE co-founders of water treatment company Memiontec : TWL +5.63% have been released on bail after being interviewed by the Commercial Affairs Department (CAD).

 

The interview was part of the CAD&rsquo s investigations into a potential offence under Section 201 of the Securities and Futures Act, which is related to the use of manipulative and deceptive devices, the company said on Monday (Aug 19).

 

Executive director and chief executive officer Tay Kiat Seng and managing director Soelistyo Dewi Soegiharto were arrested after attending interviews on Aug 14. They were subsequently released on bail.

 

Memiontec noted that Soegiharto has surrendered her passport to CAD, while Tay is allowed to travel overseas subject to prior clearance by the department.

 

Meanwhile, the company&rsquo s nominating committee &ndash which excludes Tay &ndash assessed that the pair are suitable to remain as directors.

 

It also said no immediate additional measures need to be taken currently to safeguard against internal control and other risks associated with their continued appointment.

 

The investigations are still ongoing and the arrests of Tay and Soegiharto may not lead to them being formally charged in court, said Memiontec.

 

It also pointed out that based on the information available to the committee as at Monday, the investigations are not related to the business and operations of the group.

 

&ldquo As such, there is unlikely to be any material adverse impact to the business and operations of the group,&rdquo said the water treatment company.

 

It added that the pair will provide updates when there are material developments relating to the investigations, and it will make further announcements when necessary.

 

The nominating committee and Memiontec&rsquo s board &ndash excluding Tay and Soegiharto &ndash will also continue to monitor the progress and further developments of the investigations, it said.

 

If there is any material development, the nominating committee will also reassess the pair&rsquo s continued appointment, said the company.