Hyflux trial: Olivia Lum and 5 co-accused will not be testifying as judge calls on defence

BACKGROUND

The trial opened in August 2025, four years after the High Court ordered Hyflux to wind up.

Lum’s five co-accused are: Former chief financial officer Cho Wee Peng, 57, and former independent directors Teo Kiang Kok, 70, Christopher Murugasu, 67, Gay Chee Cheong, 70, and Lee Joo Hai, 70.

Of the six, ex-CEO Lum faces the most charges, with the prosecution proceeding on two charges under the Securities and Futures Act: 

• For making an offer of S$200 million (US$157 million) worth of securities to the public with omissions about the electricity sales.
• For consenting, as CEO, to Hyflux’s intentional failure to notify the securities exchange about information relating to the electricity sales.

Another four charges against Lum were stood down or set aside while this trial went ahead.

Cho is on trial for one charge: for conniving in his capacity as CFO for Hyflux to intentionally fail to notify the securities exchange about the information related to the electricity sales.

The remaining four former independent directors face two similar charges each: For the same omission of information in an April 2011 offer information statement, and for their alleged neglect as directors, such that Hyflux intentionally failed to notify the securities exchange about the electricity sales.

Hyflux, a publicly listed company, had pitched the project to the market as its second and largest seawater desalination plant in Tuas, but allegedly omitted that it would fund the sale of water at a very low price to national water agency PUB with its new business of selling electricity from a power plant it would build.

The unsuccessful foray into Singapore’s power market contributed to the company’s collapse and affected about 34,000 investors who held perpetual securities and preference shares, and were owed a total of S$900 million, according to the prosecution.

A seventh person in the case, former Hyflux independent director Rajsekar Kuppuswami Mitta, was fined S$90,000 in 2025 after pleading guilty.

Lum is being defended by lawyers from Davinder Singh Chambers, Cho is defended by a team from Rajah & Tann, while Shook Lin & Bok represents the four former independent directors.

If convicted of consenting to Hyflux’s intentional failure to disclose the electricity sale information to the securities exchange, Lum could be jailed for up to seven years, fined up to S$250,000, or both.

For making an offer of securities to the public with omissions about the electricity sales, she could be jailed for up to two years, fined up to S$150,000, or both.

The former independent directors face similar penalties for each of their respective charges.

If convicted of conniving in how Hyflux failed to notify the securities exchange about the electricity sales, Cho could be jailed for up to seven years, fined up to S$250,000, or both.