Singapore Airlines 2001 Annual Report Download - page 55

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53 SIA annual report 00/01
6 Audit Committee
The Audit Committee comprises six members, four of whom are independent non-executive directors. The members of the Audit
Committee at the date of this report are:-
Michael Y O Fam (Chairman)
Edmund Cheng Wai Wing
Tjong Yik Min
Moses Lee Kim Poo
Ho Kwon Ping
Koh Boon Hwee
The Committee holds quarterly meetings with the internal auditors and the external auditors of the Company, and performs the
following functions:-
(a) reviews the audit plans of the internal auditors and external auditors of the Company, the results of their examination of the
Company’s system of internal accounting controls and the co-operation given by the Company’s officers to the external and
internal auditors;
(b) reviews the financial statements of the Group and the Company and the auditors’ report thereon before their submission to the
Board of Directors;
(c) nominates the external auditors for reappointment; and
(d) reviews interested persons transactions.
7 Report on the Case of the Criminal Breach of Trust (CBT) by Teo Cheng Kiat
A summarised report of the CBT case against Teo Cheng Kiat, the former supervisor of Cabin Crew Division is provided in a
separate circular as an addendum to this Report by the Board of Directors. Out of the $35.0 million misappropriated, an estimated
amount of $28.5 million is expected to be recovered. The estimated net monetary loss to SIA arising from Teo Cheng Kiat’s fraud is
$6.5 million.
8 Flight SQ006 Accident in Taipei on 31 October 2000
On 31 October 2000, Flight SQ006 crashed on the runway at the Chiang Kai-Shek International Airport, Taipei en route to Los
Angeles. There were 83 fatalities among the 179 passengers and crew members aboard the Boeing 747 aircraft. While SIA is
currently a defendant in a number of lawsuits relating to the crash, SIA maintains substantial insurance coverage which is sufficient
to cover any claims arising from the crash. Accordingly, SIA believes that the resolution of these claims will have no material impact
on the financial position of SIA. SIA is unable to identify or predict the extent of any adverse effect on its revenues, yields or results
of operations which has resulted or may result from the public perception of the crash or from any future findings by the
investigation team headed by the Taiwan Aviation Safety Council.
9 Share Capital
During the financial year, the Company repurchased 30,334,600 ordinary shares at an average price of $15.70 each pursuant to
the share buyback scheme approved by the shareholders on 11 September 1999. The shares repurchased were cum dividends of
$3.8 million.
10 Acquisition/ Disposal of Subsidiary Companies
On 23 August 2000, the Company incorporated a wholly-owned subsidiary company, Singapore Airlines Cargo Private Limited, with
a paid-up capital of $2.
During the financial year, a subsidiary company, SATS Apron Services Pte Ltd, was liquidated.
Report by the Board of Directors