A lawsuit filed by Singapore construction firm Lee Kim Tah (LKT) has surfaced corruption allegations involving former CapitaLand employees in India.
Edmund Cheah Tiang Ann is the former LKT employee being sued.
The former director was accused of allowing L&W Construction — a joint-venture subsidiary that LKT was involved in — to enter “dubious transactions” while under his watch.
CapitaLand was one of L&W’s clients. According to court filings seen by The Business Times (BT), the allegations stemmed from a project in Pune, India.
Source: CapitaLand
LKT claims that L&W’s former managing director, Asaithambi Manickam, authorised bribes to government officials and even staff from client companies, including CapitaLand.
In 2023, CapitaLand reportedly told LKT and Woh Hup — LKT’s joint-venture partner in L&W — that some of its senior staff had accepted payments linked to the project in Pune.
CapitaLand told MS News it has since conducted investigations and lodged a police report.
However, it is unable to comment further on the case as investigations are ongoing.
Nonetheless, the company stressed that it has “zero tolerance” for unethical conduct.
Besides the alleged bribes, Manickam is also accused of engaging in multiple questionable transactions.
These included awarding inflated contracts to benefit himself and his family, and funnelling business to companies linked to his relatives.
He also allegedly approved the hiring of Harchan Consultants, where his wife is the sole shareholder, as a recruitment agency. The firm collected commissions on senior hires who were later dismissed.
Source: Harchan Consultants
The alleged fraud and misconduct reportedly amount to more than 20 billion Indian rupees (S$295 million), based on whistleblower reports from L&W’s clients and employees.
LKT also accused Cheah of either approving or turning a blind eye to such activities, which it says harmed the company’s investments.
Cheah resigned from LKT in Sept 2023 but was allegedly rehired by Woh Hup’s chairman as a personal adviser in the joint venture — a move LKT repeatedly objected to.
He denied all allegations, arguing that he acted under the instructions of LKT’s late leaders and, subsequently, their children.
Cheah also maintained that his role covered investments across multiple countries — like the United Kingdom and Indonesia — and not just India.
Source: Woh Hup
Regarding L&W, Cheah stated that LKT would manage the subsidiary’s finances while Woh Hup handled the construction and associated building operations.
He also said that Woh Hup was responsible for appointing Manickam to L&W’s board, and that any irregularities occurred without his knowledge or consent.
MS News has reached out to LKT and Woh Hup for more information.
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Featured image adapted from Taha on Unsplash. For illustration purposes only.