China Aviation Oil Holding Company, the parent of China Aviation Oil, has inked an agreement with the Monetary Authority of Singapore on the civil penalty due to the former's sale of shares of CAO, a misconduct against Singapore Securities and Futures Act.

In the Monetary Authority's statement, it has found that CAOHC's placement of 145 million shares in Singapore-listed CAO at a price of 1.35 Singapore dollar per share, was arranged at CAO's request to fund CAO's guarantee. The cash proceeds raised in the placement, the investigation shows, was used by CAO to pay for its guarantee.

The Monetary Authority said this behavior did not comply with Singapore law. The CAOHC has been fined 8 million Singapore dollars for the breach of the law.

This agreement is separate from the criminal charges filed against CAO executives, including its former CEO Chen Jiulin and his other four colleagues.

By People's Daily Online