S'pore suspends staffers for insider trading

S'pore suspends staffers for insider trading

A state investment agency managing Singapore's massive foreign
reserves has suspended three officers involved in an insider
trading case in Japan.

The suspensions without pay were in addition to fines
totalling S$715,000 (US$436,000) earlier slapped on the three
staffers of the Government of Singapore Investment Corp. (GIC).

The GIC said in a statement issued late on Friday that the
suspensions would last from three to six months, with effect from
December 1. The three have also been relieved of all
responsibilities for Japanese financial markets.

The suspensions were announced more than one month after the
case was made public. The GIC, a highly secretive agency, manages
over $100 billion of the city-state's reserves.

The fines imposed on the three GIC officers led by Lim Kee
Chong, previously head of Japan equities, fell short of criminal
action.

The case involved shares of Sumitomo Mitsui Financial Group
Inc. *SMFG) listed on Japanese stock exchanges.

The Monetary Authority of Singapore (MAS) launched an
investigation after being alerted by Japanese financial
watchdogs.

It found that in February 2003, the three GIC employees used
"non-public material price sensitive information" concerning a
proposed offering of convertible preferred shares by SMFG.

SMFG share prices fell after the announcement of the proposed
offering and the sale of SMFG shares held by GIC resulted in
gains, through losses avoided, of about S$710,000 for the GIC,
the MAS found.

The gains were "not retained by the GIC employees concerned,"
the MAS added.

In addition to investing Singapore's vast foreign reserves in
financial markets, GIC also purchases prime real estate in
leading global capitals.

The republic's other state investment arm is Temasek Holdings,
which controls companies like Singapore Airlines and Singapore
Telecommunications. -- AFP