Pokka Sues Former CEO, Who’s Vivian Lai’s Husband, For a Conspiracy That Resulted in $10m Loss

Pokka is sad that you’ve stopped buying their Lemon Tea. Pokka thought its Lemon Tea was the best Lemon Tea you’d ever had. Pokka is upset.

So upset that they’re suing their ex-CEO for 10 million dollars.

The beverage giant has launched a lawsuit against its former chief executive, alleging he was part of a conspiracy that has caused the drinks maker to suffer at least $10 million in losses.

They accuse Mr Alain Ong Eng Sing, more popular for being Vivian Lai’s husband, of working with others to divert business to another beverage company, Asian Story Corporation (ASC).

He was also accused of inflating the value of ASC while waiting for the company to be acquired by Kimly, a public listed coffee shop operator. Yes, that Kimly with really lit zichar stalls.

But what proof do they have of his illegal dealings?

A love triangle

According to Pokka’s investigations, ASC, Kimly, and Ong were all in cahoots.

In April 2015, ASC’s entire shareholding was transferred to Ms Seah Li Ling, wife of Mr Glenn Seah, a former Kimly executive director.

Then, Mr Lim Hee Liat, who was executive chairman and controlling shareholder of Kimly at that time, became the beneficial owner of the ASC shares under Ms Seah’s name from at least March 2016.

And in August 2016, on Mr Ong’s advice, Pokka said it entered into a manufacturing agreement with ASC to develop recipes and make Asian drinks on behalf of ASC.

However, they now allege that Ong’s true intention for this agreement was to promote ASC drinks using the Pokka brand.

Pokka claim that this agreement with ASC diverted its business opportunity of producing its own range of Asian drinks and was “without merit or commercial justification”.

According to the beverage giant, ASC has never had any manufacturing or distribution capabilities and appeared to have one employee.

Wah, a company like ASC having only one employee?

Inflation of ASC’s value

Pokka also claims that the three conspirators inflated ASC’s value.

They did through a number of ways:

• Offering preferential trade deals on ASC products
• Giving incentives for Pokka International employees to sell ASC products
• Incurring significant advertising and promotional expenses by Pokka for the benefit of ASC
• Diverting corporate opportunities from Pokka to ASC.

In February 2017, Mr Ong then became a non-executive and non-independent director of Kimly when he was still a Pokka employee.

Which, of course, he did not declare.

In July 2018, Kimly announced its acquisition of ASC for $16 million, which was allegedly masterminded by Ong.

Losses

Pokka said it suffered losses of more than $7 million due to Ong’s dealings with Kimly and ASC.

The beverage giant also claims that the three conspirators tried to divert the business of Monarch Beverage Company, which owns the Kickapoo brand, from Pokka to ASC.

Pokka allege that this led to Monarch terminating an agreement with Pokka to produce, sell and distribute beverages including Kickapoo, resulting in a loss of $3.7 million.

Ong’s response

Ong argued that his decision to sign on ASC as an agency brand was intended to attack Yeo Hiap Seng, forcing it to reallocate its resources to defend its core Asian drinks market.

He added that this decision was approved by the board and management.

Ong was deputy group CEO of Pokka Corporation (Singapore) and CEO of Pokka International before he was removed in September 2018 after internal investigations.

There have been no further legal developments, but things do not look good for the former Pokka CEO.

So, to summarise, here’s one simple sentence: Pokka accuses Ong of working “secretly” with another company while he’s still with Pokka, and he’s now in that other company. Simple as that.