(SINGAPORE) Catalist-listed Oculus has come out to say that its controlling shareholder, Ariel Singapore, had used $15 million of its trust money for certain investments of its own.

In a statement to the Singapore Exchange (SGX) yesterday, it said that only Low Shiong Jin, an executive director of Ariel and Oculus, was aware that the money was used by Ariel 'to fund certain investments in August and September 2007'.

Mr Low has now been removed as a signatory from the company's bank account and has relinquished all executive roles and responsibilities in the company, the directors said.

They were trying to explain the reasons behind the delay in the repayment of $15 million in trust monies by Ariel to Oculus.

This $15 million in trust monies were proceeds from a share placement of Oculus held by Ariel, which were supposed to be subsequently paid back to Oculus. The delay in returning the money had obstructed the timely completion of Oculus's audited accounts for FY2007, and the consequent delay in the holding of its annual general meeting.

The money held by Ariel was supposed to have been transferred to Oculus in February this year. By the end of February, the directors of Oculus found - during the review of Oculus's financial statements - that the money held in trust had not been paid into the Oculus bank accounts and was still held by Ariel.

Ariel then agreed to repay the money in early March. But by mid-March, the money still had yet to be recovered, despite Oculus's directors having been informed by Mr Low that the proceeds had been returned to the company.

Mr Low, the majority shareholder of Ariel, then promised Oculus directors that the money would be repaid to the company on May 5, and explained that it had been unable to disburse the proceeds due to a disagreement between two of Ariel's directors.

Half the money - $7.5 million - has since been repaid by Ariel and Mr Low to Oculus's account.

Oculus has granted Ariel up to May 19 to repay the remaining sum of $7.48 million, and has taken a fixed charge over some 54 million Oculus shares held by Ariel, which it can sell to recover the money if Ariel does not pay up. With the share charge, any transaction in these shares will require the consent of the company.

Yesterday, Oculus directors also announced that Mr Low has now been redesignated as a non-executive director and is still up for re-election at the company's upcoming AGM on May 30.

Oculus directors advised its shareholders to refrain from taking any action in respect of their shares and to exercise high-level caution when dealing in the shares.

This article was first published in The Business Times on May 15, 2008

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