Ex-Hyflux deputy CEO says he had limited knowledge of Tuaspring project

He maintains he was not aware of the ‘magnitude of losses and profits’

- Grace Leong Senior Correspondent

Mr Sam Ong Eng Keang - the eighth prosecution witness to take the stand in the criminal trial - was asked about his understanding of how revenue generated from the Tuaspring power plant could subsidise the desalination plant.

(ST PHOTO: KELVIN CHNG)

Former Hyflux deputy chief executive Sam Ong Eng Keang was aware that the water treatment firm was going into the business of selling electricity in the Tuaspring project, but maintained that he was not aware of the “magnitude of losses and profits”.

Mr Ong - the eighth prosecution witness to take the stand in the criminal trial of Hyflux founder and former chief executive Olivia Lum, former chief financial officer Cho Wee Peng and four independent directors — was asked by both the prosecution and the defence about his understanding of how revenue generated from the power plant could subsidise the desalination plant.

On Day 18 of the criminal trial on Sept 22, Mr Ong told the court that the desalination plant could be subsidised as “the power tariff is, quantum-wise, higher than the water tariff”.

When asked by Deputy Chief Prosecutor (DCP) Christopher Ong to explain his answer fully, Mr Ong said: “As an integrated project, it would be viable.”

When asked the same question in his cross-examination by Lum’s lawyer, Senior Counsel Davinder Singh, Mr Ong said that “subsidising could mean subsidising profits or optimising of cost savings”.

Mr Singh said: “Therefore, it is clear from these words that revenue and profits from power would subsidise the cost of desalinated water?”

Mr Ong replied: “Correct, but I don’t know the extent of it.”