Ex-Hyflux leaders, headed by Olivia Lum, stand trial for failing to disclose crucial details about the Tuaspring project to SGX
Hyflux Trial Begins Over Alleged Omissions in Tuaspring Project Communications
In a significant development, the homegrown water treatment firm Hyflux is standing trial over alleged omissions in communications to investors and the Singapore Exchange (SGX) regarding the Tuaspring Project. The project, which aimed to design, build, own, and operate Singapore’s second and largest seawater reverse osmosis desalination plant, has been at the centre of issues that led to the collapse of Hyflux.
The trial, presided over by Principal District Judge Toh Han Li, commenced in August 2025 and has been scheduled for a total of 57 days across two tranches, spanning from August to October and November to January. Six individuals, including Olivia Lum Ooi Lin, Cho Wee Peng, Gay Chee Cheong, Teo Kiang Kok, Murugasu Christopher, and Lee Joo Hai, are on trial for their roles in Hyflux.
The prosecution is pursuing charges under the Securities and Futures Act (SFA) linked to two key public statements by Hyflux. The first, a March 2011 announcement, gave an impression that the power plant was to be built to supply power to the desalination plant. However, it was later revealed that the core omissions were the non-disclosure that the project ventured into electricity sales, a new and risky business area for Hyflux. The prosecution alleges that electricity sales from the power plant would constitute the majority of the project’s revenue, and that the project’s profitability hinged on these electricity sales rather than on desalination alone.
The second statement in question is the April 2011 offer information statement, which forms the basis of certain charges against five of the Hyflux ex-leaders. The alleged omissions in this document were that Hyflux’s expansion into selling electricity was not disclosed, and that the revenue from the sale of electricity from the Tuaspring Project’s power plant was projected to make up the significant majority of the project’s revenue.
The collapse of Hyflux resulted in significant losses to investors, including about 34,000 investors who were owed a total of S$900 million. A seventh individual, former Hyflux independent director Rajsekar Kuppuswami Mitta, was fined S$90,000 last week after pleading guilty.
Lum is defended by lawyers from Davinder Singh Chambers, Cho is defended by a team from Rajah & Tann, while the four former independent directors are represented by Shook Lin & Bok. The trial is expected to shed light on the circumstances leading to the financial downfall of Hyflux and the alleged omissions in communications regarding the Tuaspring Project.
The trial for Hyflux's leaders involves charges under the Securities and Futures Act (SFA) due to allegations of omissions in two key statements, with the first statement failing to disclose that the Tuaspring Project would venture into selling electricity, a new and risky business area for Hyflux. The second statement did not disclose Hyflux's expansion into electricity sales and projected revenue from electricity sales as the major source of the project's revenue.
The business ventures of Hyflux into unsustainable areas and the alleged omissions in finance-related communications relating to the Tuaspring Project are alleged to have resulted in significant losses for investors.
