AN independent director of Hyflux, Lee Joo Hai, has been further charged under Section 253 of the Securities and Futures Act, which outlines criminal liability for false or misleading statements.

Lee is being investigated amid potential lapses in disclosures by Hyflux on its Tuaspring Integrated Water and Power Project, and possible accounting irregularities.

Lee is contesting the charge, property company IPC Corporation, of which Lee is an independent director, said in a bourse filing on Friday (Jun 16).

In March, he was charged with one count of neglect as an independent director under the Securities and Futures Act, The Business Times reported in May.

His alleged neglect resulted in Hyflux on Mar 7, 2011, intentionally failing to notify the bourse that the Tuaspring project was its expansion into a new business of selling electricity.

The water treatment company also failed to disclose that the plant’s profitability was contingent on electricity sales revenue, which was projected to make up a significant proportion of its overall revenue.

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IPC Corporation on Friday said its business and operations are unaffected by the Hyflux investigation. Its nominating committee has said that the recent charge does not compromise Lee’s duties, as Lee has conducted himself professionally since his board appointment.

“Notwithstanding the charge, the nominating committee and the board (both with Mr Lee abstaining) are of the view that the character and integrity of Mr Lee remain suitable for him to continue as director of the company,” IPC said.

Shares of IPC Corporation last traded at S$0.135 on Jun 15.