Singapore-listed Yoma Strategic Holdings said it is seeking legal advice following a report by The Irrawaddy citing sources who said its former executive-chair Serge Pun faces charges from the military regime for allegedly using criminal proceeds from online scam centers to invest in the expansion of a real-estate project in Yangon.
The Irrawaddy published the report on Friday, saying the 71-year old tycoon was charged with money laundering and other illegal transactions in late July after his month-long detention.
He faces two additional charges: misusing public funds and damaging the interest of the national government for allegedly using criminal proceeds from online scam centers to invest in the expansion of Star City, a massive real-estate project in Yangon Region’s Thanlyin Township, sources told The Irrawaddy.
They said that Chinese authorities asked the regime to investigate the source of funding for Star City’s expansion.
Melvyn Pun, Yoma CEO and one of Serge Pun’s sons, said on Sunday in a Singapore Exchange filing that Yoma categorically denied that criminal proceeds from online scam centers had been used to fund the expansion of Star City.
Yoma said the Irrawaddy report contains untrue, inaccurate or misleading allegations and could cause unnecessary concern among stakeholders and negatively affect its reputation.
“There are no investigations by the Myanmar authorities involving the company, its directors, executive officers, employees, or the group’s businesses,” the filing said.
The Group [Yoma] is seeking legal advice and is prepared to take all necessary action to protect its interests and defend itself,” it added.
Also known as U Theim Wai, Serge Pun and other senior members of Yoma bank, where Serge Pun is the executive chair, were questioned in June and later detained by the junta.
They are accused of violating financial regulations by providing mortgages through the bank to Myanmar nationals seeking to buy property in Thailand, and of exceeding the central bank’s cap on housing loans.
Following news about his detention, Yoma Strategic Holdings told the Stock Exchange of Singapore that Serge Pun was cooperating with authorities in Naypyitaw. “There are no charges filed against him,” Melvyn Pun said in that statement to regulators.
On July 24, Serge Pun stepped down as executive chairman of Yoma Strategic Holdings after 17 years in charge.
This was preceded by a July 10 notice to the Singapore Stock Exchange claiming that a July 9 article in Myanmar Now reporting widespread claims in Myanmar that Serge Pun had been detained by the junta was false. The notice to regulators added: “The Company will provide further updates and clarifications as necessary.”
In a subsequent notice to Singaporean regulators, Yoma Strategic said Serge Pen’s decision to step down “will enable Serge Pun to dedicate his attention to resolving matters relating to his engagement with Myanmar’s authorities concerning banking activities in the country, and preserve the stability of the group.”
In a July 24 filing in response to Singaporean regulators, Yoma Strategic Holdings answered the question: “Is there any matter in relation to the cessation [of Serge Pun’s role at the company] that needs to be brought to the attention of the shareholders of the listed issuer?”
In the filing from Melvyn Pun he replied, “No.”
