On November 22, 2023, five employees from Nippon Paint Singapore, including its General Manager, faced charges in court for allegedly committing cheating offences involving a total of S$370,000. Each individual is charged under Section 420 of the Penal Code for cheating and dishonestly inducing the delivery of property, along with Section 109 of the Penal Code, which deals with abetment of the offence.

The employees charged are:

Ong Min Khim, 58, General Manager
Ng Hwee Heng (Davis Huang Weixing), 51, Senior Manager
Chua Bingwen Gerald (Cai Bingwen Gerald), 41, Senior Manager
Lee Susan (Li Susan), 46, Senior Sales Executive
Er Sok Tin, 57, Trainer
As a result of the allegations, Nippon Paint announced that all five employees have been suspended until further notice.

Details of the Allegations
The charges are linked to activities that took place from April 2021 to February 2022. During this period, the five employees allegedly conspired on 11 occasions to deceive Nippon Paint into believing that they had no vested interest in a company called TLC Painting & Construction, which was contracted to provide services to Nippon Paint.

As a result of this deception, Nippon Paint issued a total of 11 cheques, cumulatively amounting to S$370,000, between July 22, 2021, and December 24, 2021. This situation raises significant concerns about corporate governance and ethical conduct within the organization.

Potential Consequences
If found guilty, each of the accused could face severe penalties, including imprisonment for up to 10 years and substantial fines. This incident is particularly noteworthy as it comes on the heels of previous legal troubles for Nippon Paint, including a case in January 2023, where a former executive was charged with insider trading related to the company’s proposed acquisition of DuluxGroup.

The developments highlight ongoing scrutiny of corporate practices in Singapore, particularly in light of recent legal actions taken against various companies and executives for financial misconduct.

Public and Corporate Response
In light of these allegations, Nippon Paint has stated its commitment to upholding the highest standards of integrity and transparency. The company indicated that it is cooperating with the authorities in the ongoing investigation.

As the case unfolds, it remains to be seen how these charges will impact Nippon Paint’s reputation and operations in the competitive paint industry, as well as the broader implications for corporate governance standards in Singapore.