Investigator 'took advantage' of Hyflux founder's inability to recall events: Lawyer

Davinder Singh asks why she didn't show his client banks' letter stating support for loans

- Grace Leong

Despite earlier concerns about Hyflux's Tuaspring project, a group of banks still gave "in-principle management support" for loans of up to $527 million, argued the lead lawyer for Hyflux founder Olivia Lum on the second day of her trial.

To support his case, Senior Counsel Davinder Singh on Aug 12 made reference to a letter issued by the banks to Hyflux on Jan 14, 2011, after they finished reviewing Hyflux's plan to build a desalination plant and a power plant, and sell excess electricity from the power plant to the grid.

In the letter, they said they had "in-principle management support for a credit facility of up to $283 million for the desalination plant and shared infrastructure, and a credit facility of up to $244 million for the power plant", as long as Hyflux met certain criteria, such as being named "preferred bidder" for the project.

The letter was sent 10 days after they had raised concerns about risks arising from Hyflux's strategy of selling electricity to subsidise the sale of water to national water agency PUB.

In his cross-examination of the Commercial Affairs Department's lead investigating officer, Ms Jacqueline Wei Maojun, Mr Singh asked why she did not show Lum the entire letter when she was questioned in 2020, or give her a complete picture of the banks' position. He said the letter showed that the banks were prepared to give their support, despite their concerns.