SINGAPORE (March 30): Singapore Exchange (SGX) has filed a complaint with authorities in China against the executive chairman and CEO of China Fibretech, Wu Xinhua.

In a Thursday announcement, SGX says the complaint was made in relation to “several alleged offenses under the Chinese Penal Code”, and filed through lawyers appointed in both Singapore and China who have been advising the bourse on the matter since 2016.

The bourse adds that it has also referred the matter to the Singapore authorities.

China Fibretech was listed on the Mainboard of the SGX in 2008.

The company is pure play fabric processing service provider in China, which is principally engaged in the provision of dyeing and post-processing treatment services for a variety of fabrics.  

In Nov 2015, the company received claims from three customers who reportedly suffered damages and financial losses after products of the company’s subsidiary, Shishi Simwa Knitting & Dyeing, had not met their specified requirements.

Wu subsequently approved payment for customers’ compensation claims without the permission of the board, and to date has not provided proof that the company had probed those claims.

In July last year, the company revealed the total amount of claims amounted to some RMB466 million (S$94.4 million), and said it would be “engaging a reputable law firm to handle the claim and establish the facts surrounding [the claimants’] allegations and take steps to verify their claims”.

Wu had also defaulted on a promised meeting with SIAS arranged by independent directors.

Shares of China Fibretech have been suspended from trading since November 2015.