Saturday, November 27, 2004

GIC staff suspended for insider trading 

Last month, I wrote that the Monetary Authority of Singapore (MAS) had penalised three Government of Singapore Investment Corporation (GIC) employees for insider trading involving Japanese shares, but that GIC continued to employ them. It seems that GIC has hardened its stance on the infringement.

According to the Channel NewsAsia story “GIC suspends three over insider trading scandal”, the three offenders have now been suspended and relieved of their responsibilities for Japanese financial markets.

While I would not recommend an unduly harsh punishment on the three employees — remember that they did not directly gain from the incident — I thought that it was imperative that GIC took swift action from the beginning to restore confidence in the company. The delay causes one to wonder how committed the company management is to ethical conduct.

Well, better late than never, I guess.


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