Prosecutors close case against Hyflux founder Olivia Lum after 54 days of trial

According to the prosecution, Olivia Lum intentionally failed to disclose material information as she feared that would deter investors during a bid to win a project in 2011.

ST PHOTO: KELVIN CHNG

Published Sep 30, 2026, 05:00 AM

Updated Sep 30, 2026, 05:00 AM

Singapore prosecutors closed their 54-day criminal case against former Hyflux founder Olivia Lum, accused of failing to disclose crucial project risks in the Tuaspring water and power project.

Hyflux collapsed after weak electricity sales, leaving 34,000 investors with losses of $900 million, highlighting failures in disclosure and investor protection.

Lum and other directors face charges for omissions under SGX rules, with potential jail and fines; defence to respond on Oct 21, 2025.

SINGAPORE – The criminal trial of Hyflux founder and former chief executive Olivia Lum closed on Sept 29 after 59 weeks of proceedings, during which 22 witnesses were called in relation to the collapse of the water treatment firm, one of Singapore’s largest corporate scandals.

On Oct 21, the defence, led by Senior Counsel Davinder Singh of Davinder Singh Chambers, will indicate whether or not to submit a “no case to answer”.

According to the prosecution, because of Lum’s determination to win the Tuaspring integrated water and power project in 2011, the 65-year-old entrepreneur intentionally failed to disclose material information, including the fact that the project’s profitability hinged on electricity sales, as she feared doing so would deter investors.

Hyflux was placed under judicial management in November 2020 and wound up in 2021. Its collapse due to weak electricity sales left about 34,000 investors of perpetual securities and preference shares, who had sunk in a combined $900 million, with nothing.

The case underscored the risks of project finance complexity, disclosure failures and the need for stronger investor protection regulations.

The prosecution , led by Deputy Chief Prosecutor Christopher Ong, had called 22 witnesses including former Hyflux staff who were involved in preparing corporate announcements or documents, and bank representatives who interacted with Hyflux personnel in negotiating Tuaspring’s financing.

Hyflux won the tender for Tuaspring with the lowest submitted bid. It had proposed to sell water to PUB at a first-year tariff price of 45 cents per cubic metre, undercutting its competitors by at least 27%. But that meant the plant would operate at a loss, the prosecution alleged.

“To make the project financially viable, and also fulfil PUB’s requirement to procure or produce electricity for the desalination plant at Hyflux’s cost, Hyflux intended for the power plant to supply electricity to the desalination plant, while actually selling the vast majority of the power that it generated to the national grid,” the prosecution said.

But Hyflux had no prior experience in power generation, much less selling electricity.

The criminal trial began in August 2025 before Principal District Judge Toh Han Li.

Over 54 days, the court heard why Hyflux allegedly did not disclose that it would have significant exposure to the electricity market, how it had looked to retail and institutional investors to fund Tuaspring because it had trouble getting bank loans, and that DBS was the party that floated the idea of Hyflux issuing preference shares to raise funds in 2011.

In August 2025, the prosecution proceeded on 11 charges against six defendants. These included two charges each against Lum and four former independent directors – Teo Kiang Kok, 70; Gay Chee Cheong, 69; Christopher Murugasu, 67; and Lee Joo Hai, 70.

Hyflux’s ex-chief financial officer Cho Wee Peng faces one charge over conniving in Hyflux’s omission to disclose the information about Tuaspring.

Of the six charges Lum faces , four Companies Act charges were stood down. The prosecution proceeded on the two remaining charges against her.

Those charges relate to her consenting to Hyflux’s omission of information relating to Tuaspring, when disclosure was required under Singapore Exchange (SGX) listing rules. This information was necessary to avoid the establishment of a false market in Hyflux’s securities.

According to one charge, she consented to intentionally failing to notify SGX that the Tuaspring project was Hyflux’s expansion into the new business of selling electricity, and that the plant’s profitability was contingent on electricity sales revenue, which was projected to make up a significant proportion of its overall revenue.

This had implications for Tuaspring’s resulting exposure to market risks arising from the volatility of electricity prices. If convicted of this charge, Lum faces up to seven years’ jail, a fine of up to $250,000, or both.

She was also charged over Hyflux’s omission to disclose the information about Tuaspring in the offer information statement issued for the offer of $200 million, 6% preference shares on April 13, 2011. If convicted of this charge , she faces up to two years’ jail, a maximum fine of $150,000, or both.

The four former independent directors were each charged with neglect relating to Hyflux’s failure to disclose information relating to Tuaspring as required, and omitting material information in the 2011 offer information statement.

One other independent director, Rajsekar Kuppuswami Mitta, pleaded guilty on Aug 7, 2025, to a charge of neglect in relation to the March 7, 2011, announcement by Hyflux to SGX.

Grace Leong is senior correspondent at The Straits Times, covering property, white-collar crime, bankruptcies and liquidation.

检方称，Olivia Lum 故意隐瞒重要信息，因为她担心这会在 2011 年竞标一个项目时吓跑投资者。

《海峡时报》摄影：KELVIN CHNG

发布于 2026 年 9 月 30 日上午 5:00

更新于2026年9月30日上午5:00

新加坡检方结束了对前凯发集团创始人林瑞莲长达 54 天的刑事指控，她被控未披露大泉水电项目中的关键项目风险。

Hyflux因电力销售疲软而倒闭，导致34000名投资者损失9亿美元，凸显了信息披露和投资者保护方面的不足。

Lum 和其他董事因违反新加坡交易所规则而面临指控，可能面临监禁和罚款；辩方将于 2025 年 10 月 21 日作出回应。

新加坡——经过 59 周的审理，Hyflux 创始人兼前首席执行官 Olivia Lum 的刑事审判于 9 月 29 日结束。审判期间，共有 22 名证人出庭作证，该案与这家水处理公司的倒闭有关，是新加坡最大的企业丑闻之一。

10 月 21 日，由 Davinder Singh Chambers 的高级律师 Davinder Singh 领导的辩方将表明是否提交“无须答辩”的抗辩。

检方称，由于林女士决心在 2011 年赢得大泉水电综合项目，这位 65 岁的女企业家故意隐瞒了重要信息，包括该项目的盈利能力取决于电力销售这一事实，因为她担心这样做会吓跑投资者。

Hyflux 于 2020 年 11 月被置于司法管理之下，并于 2021 年倒闭。由于电力销售疲软，该公司倒闭导致约 34,000 名持有永久证券和优先股的投资者血本无归，他们总共投入了 9 亿美元。

该案例凸显了项目融资复杂性、信息披露不充分以及加强投资者保护法规的必要性所带来的风险。

由副首席检察官Christopher Ong领导的检方传唤了22名证人，其中包括参与准备公司公告或文件的前Hyflux员工，以及在与Tuaspring融资谈判中与Hyflux人员互动的银行代表。

Hyflux以最低报价中标了Tuaspring水厂项目。该公司提议以每立方米45仙的价格向公用事业局（PUB）出售水，第一年价格比竞争对手至少低27%。但检方称，这意味着该水厂将亏损运营。

检方表示：“为了使该项目在经济上可行，并满足公用事业局（PUB）要求以凯发集团（Hyflux）的费用为海水淡化厂采购或生产电力，凯发集团打算让发电厂向海水淡化厂供电，而实际上却将发电厂生产的绝大部分电力出售给国家电网。”

但凯发集团此前没有任何发电经验，更不用说售电了。

刑事审判于 2025 年 8 月在首席地方法官杜汉利 (Toh Han Li) 面前开始。

在为期 54 天的庭审中，法庭听取了 Hyflux 涉嫌未披露其将对电力市场有重大影响的原因，以及由于难以获得银行贷款，Hyflux 如何寻求零售和机构投资者为 Tuaspring 提供资金，以及星展银行 (DBS) 如何在 2011 年提出 Hyflux 发行优先股以筹集资金的想法。

2025年8月，检方对六名被告提起11项指控。其中包括对林某和四名前独立董事——70岁的张强国、69岁的许志昌、67岁的克里斯托弗·穆鲁加苏和70岁的李柱海——各两项指控。

Hyflux 前首席财务官 Cho Wee Peng 面临一项指控，罪名是串谋 Hyflux 未披露有关 Tuaspring 的信息。

林某面临六项指控，其中四项违反《公司法》的指控被撤销，检方继续就剩余两项指控进行诉讼。

这些指控与她同意凯发集团隐瞒有关大华泉（Tuaspring）的信息有关，而根据新加坡交易所（SGX）的上市规则，这些信息本应予以披露。这些信息对于避免在凯发集团的证券市场中形成虚假交易至关重要。

其中一项指控称，她同意故意不通知新加坡交易所，Tuaspring 项目是 Hyflux 进军电力销售新业务的扩张，并且该工厂的盈利能力取决于电力销售收入，预计该收入将占其总收入的很大一部分。

这导致 Tuaspring 面临因电力价格波动而产生的市场风险。如果这项指控成立，Lum 将面临最高七年监禁、最高 25 万美元罚款，或两者并罚。

她还被指控在2011年4月13日发布的2亿美元6%优先股要约信息声明中，Hyflux公司未披露有关Tuaspring的信息。如果这项指控成立，她将面临最高两年的监禁、最高15万美元的罚款，或两者并罚。

这四位前独立董事均被指控疏忽大意，导致 Hyflux 未能按要求披露与 Tuaspring 相关的信息，并在 2011 年的要约信息声明中遗漏了重要信息。

另一名独立董事 Rajsekar Kuppuswami Mitta 于 2025 年 8 月 7 日承认在 Hyflux 于 2011 年 3 月 7 日向新加坡交易所发布的公告中存在疏忽行为。

Grace Leong是《海峡时报》的高级记者，负责报道房地产、白领犯罪、破产和清算等新闻。