SINGAPORE – NRA Capital founder Kevin Scully will resign from his firm after the Monetary Authority of Singapore (MAS) slapped him with a three-year ban on financial advisory work in the wake of investigations into 1Malaysia Development Bhd (1MDB).
Mr Scully, a veteran of the Singapore financial market who founded his boutique financial services firm in 1999, told The Business Times that he will relinquish his duties from NRA and resign from his post following the PO (prohibition order), and that “the staff will take over the business if they want to”.
Sen Yue Holdings, a company at which Mr Scully is lead independent director, also announced on Tuesday that its nominating committee is reviewing the matter and will make recommendations in due course on Mr Scully’s directorship.
In a statement on Tuesday, the MAS said that it had issued a prohibition order against Mr Scully restricting him from providing any financial advisory services; and taking part in the management of, acting as a director of, or becoming a substantial shareholder of any financial advisory firm in Singapore for three years beginning Dec 18.
The sanction reflected MAS’s finding that Mr Scully had failed to ensure that certain valuation work carried out by his firm was done with “sufficient care, judgement and objectivity”.
The valuation work in question related to a report on PetroSaudi Oil Services Ltd that was issued by NRA head of research Lee Chee Waiy at the request of former Maybank Kim Eng Securities remisier Kelvin Ang. Ang was convicted on May 24, 2017 of bribing Mr Lee with S$3,000 to expedite the favourable report. Investigators have alleged that inflated PetroSaudi valuations were used to justify and obscure improper fund transfers at the heart of the 1MDB scandal.
Mr Lee and Ang have each been served with six-year POs that took effect from Oct 30.
The MAS has issued eight POs to date stemming from 1MDB-related breaches.