Shares of Hotel Properties experienced a significant decline in early trading following the announcement that the company’s managing director, Ong Beng Seng, had received a notice of arrest and was being questioned in relation to a corruption investigation in Singapore.
The stock price of Hotel Properties dropped by 4.4% to 3.69 Singapore dollars (US$2.79) on Friday morning, marking the largest one-day loss for the company in over two years.
Hotel Properties disclosed in a filing with the stock exchange that Ong Beng Seng had been summoned by Singapore’s Corrupt Practices Investigation Bureau (CPIB) to provide information about his interactions with the city-state’s transport minister. The company clarified that no charges had been filed against Ong, who promptly posted bail after receiving the notice of arrest.
According to Hotel Properties, Ong will temporarily travel overseas starting from Friday but intends to surrender his passport to the CPIB upon his return. The company emphasized that Ong is fully cooperating with the CPIB and has provided the requested information. Furthermore, an internal committee within Hotel Properties has affirmed that Ong remains suitable to carry out his duties and responsibilities as managing director.
The statement from Hotel Properties follows the CPIB’s recent announcement that they are conducting an investigation into a case, which involved an interview with Transport Minister S. Iswaran. Iswaran has been placed on leave during the duration of the probe and has not been implicated in any wrongdoing.
Hotel Properties possesses an extensive portfolio of hotels and resorts across 15 countries, including notable locations such as the United Kingdom, Italy, Indonesia, South Africa, and Singapore.