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Komoco Motors demands Tampines Rovers repay S$190k sum

SINGAPORE – They were hit by cash-flow issues last year, before an “administrative issue” early in the 2017 S.League season saw Tampines Rovers struggling to pay its players’ wages.

SINGAPORE – They were hit by cash-flow issues last year, before an “administrative issue” early in the 2017 S.League season saw Tampines Rovers struggling to pay its players’ wages.

The five-time League champions now have another problem to contend with.

Komoco Motors’ lawyers have sent a letter of demand to Tampines seeking the repayment of a S$190,000 sum made out from the company to the Stags at the end of 2015, TODAY has learnt.

According to sources, Komoco Motors group managing director Teo Hock Seng, who was Tampines’ chairman from 2000 to 2015 before handing the reins over to vice-chairman Krishna Ramachandra, had agreed to provide the money before the start of the 2016 S.League season in February on the premise that the club would repay it when they received their allotted subsidies from the Football Association of Singapore (FAS).

The relationship between Teo and Ramachandra appears to have become strained, with Hyundai — which is distributed by Komoco — deciding to end its sponsorship of Tampines for the 2017 season. Teo and Ramachandra had also contested the FAS elections last month on opposing camps, with the former part of Team LKT led by Lim Kia Tong, while Ramachandra campaigned with Team Game Changers helmed by Hougang United chairman Bill Ng.

Teo was elected FAS vice-president at the elections, which was won by Team LKT.

When Tampines did not repay the money, Komoco’s lawyers then issued a letter of demand to the club early this month requesting for the debt to be paid. While Teo declined to comment on the matter, a spokesperson from Tampines confirmed On Wednesday (May 24) that the club had received the legal letter.

However, the spokesperson said that they are checking to see if the debt to Komoco is valid before committing to any repayment.

TODAY understands that there are questions about the veracity of the debt, the amount involved, and the processes used to secure it.

“We are working closely with external auditors to establish the veracity of the debt claims,” said the spokesperson.

“If indeed they are proven correct and all the appropriate RPT (related person transaction) procedures had been carried out prior to any such loan been extended, then it will certainly be a debt that the club will repay.

“We are not at liberty to simply pay out on an amount that is in the accounts that the new committee had absolutely no control over.”

According to the spokesperson, Tampines’ current management committee (MC) were also told that the club would be debt-free when they took over from the previous committee in November 2015.

TODAY understands that the sum was made out to Tampines before the MC came into power.

Tampines had started the 2016 S.League season with a bang after the Eastern giants signed on former Liverpool and Arsenal winger Jermaine Pennant for a reported monthly wage of S$20,000.

Lauded as a coup for the ailing S.League, the deal turned sour months later when Pennant decided to leave the Stags after just one season after refusing to accept a new deal with reduced terms.

The Stags, who also signed several LionsXII players after the FAS-operated club became defunct, also ran into cash-flow problems last season as they struggled with their operating costs, which is understood to have been close to S$3 million.

In contrast, most S.League clubs operate on an average budget of between S$1 million and S$1.6 million.

One of the reasons for Tampines’ high operating costs last year was due to their involvement in the Asian Football Confederation (AFC) Cup.

The team travelled to countries like the Philippines, Bangladesh and India, and advanced into the quarter-finals of the tournament.

The AFC provides subsidies of around S$27,000 to clubs for each away match to help defray travel costs.

Tampines’ financial issues led to the Stags approaching the FAS for financial assistance and a request for their subsidies — which can reach up to about S$900,000 annually depending on whether the club meets certain targets and key performance indicators (KPIs) — to be provided in advance.

While FAS rejected their request, Tampines said later that it had sorted out its financial situation.

In March, The New Paper reported that the club had been late in paying salaries to some players. Ramachandra had then said that this was because the club was “waiting on subsidies” from the FAS.
TODAY understands, however, that this issue has been resolved.

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