Singapore court rules son of ex-PM Goh Chok Tong caused US$146 million in losses to company

Goh Jin Hian has been found liable for S$196 million (US$146 million) in losses as director of now-insolvent marine fuel supplying company Inter-Pacific Petroleum (IPP).

In brief remarks obtained by CNA on Tuesday, Justice Aedit Abdullah ruled in favour of IPP, which had sued Goh, who is the son of former Singapore prime minister Goh Chok Tong, for breaching his director’s duty.

IPP’s claim was that Goh, 55, had failed to look into certain issues which would have led him to realise that the company was being defrauded.

In his defence, Goh claimed that there was no breach, no loss caused and he claimed relief from liability under the Companies Act.

In his brief remarks issued on January 24, ahead of a full judgment that has yet to be released, Justice Abdullah said Goh had an obligation to oversee the affairs of the company as a director.

“The obligation is to monitor the affairs of the corporation,” he said. “This entails, among others, at least broad level supervision of the activities of the officers of the corporation, for the protection of the company, shareholders and creditors.”

The judge said the evidence showed that Goh played an active role in the management of the company and had assumed responsibilities, and obtained knowledge and information.

While Justice Abdullah said a director need not know all details, the evidence showed a lack of knowledge by Goh about IPP’s cargo trading business, which was a significant portion of the company’s activity.

There were three “red flags” that should have triggered Goh’s inquiry into the financial position of the company, said the judge. About US$132 million was owed to the company, its bunker licence got suspended, posing a threat to its profitability, and large sums totalling