SINGAPORE - The Monetary Authority of Singapore (MAS) has taken civil enforcement action against two Wilmar International employees for insider trading.
Both admitted using price sensitive information not available to the public to make a profit on the share market.
Mr Goh Ing Sing, the group plantation head of the commodity giant, has paid a civil penalty of $110,000.
His colleague, Mr Keu Haw Gee, Wilmar's plantation head, was fined $50,000.
A civil penalty is not a criminal action and does not attract criminal sanctions.
On Aug 13, 2010, Wilmar announced its intention to buy 20per cent of the share capital of palm oil producer Kencana Agri, which is listed on the Singapore Exchange.
After the announcement, Kencana's share priced closed at 38.5 cents, 10 per cent higher than the closing price of 35 cents the day before.
Mr Goh and Mr Keu were involved in the due diligence exercise conducted by Wilmar and Kencana's plantations before the announcement.
Mr Goh bought 626,000 Kencana shares while in possession of non-public price-sensitive information concerning Wilmar's intention to invest in Kencana. He made a profit of $43,000.
Mr Keu made a profit of $2,000 from the 50,000 shares he bought.
The matter was referred to MAS by the SGX.
Both Mr Goh and Mr Keu admitted to contravening Section 219(2)(a) of the Securities and Futures Act.