(SINGAPORE) The troubling developments at Singapore-listed China Sun Bio-chem Technology are building up to a climax.

In a statement yesterday, the company's independent directors (IDs) said the chairman and CEO Sun Guiji has been suspended from his posts.

Mr Sun is also no longer authorised to sign for any of the group's bank accounts, nor handle any borrowing, loans or negotiation of credit facilities on the group's behalf.

With the no-show of the three executive directors (EDs) and sole non-executive director, the resolutions were passed by the three IDs at a board meeting on Wednesday.

In their statement to the Singapore Exchange (SGX) yesterday, the IDs - Lai Seng Kwoon, Teo Moh Gin and Loo Choon Chiaw - said that chief financial officer Herman Wong would take immediate control of all the group's financial matters.

They have now given Mr Sun two weeks to report the status and whereabouts of a sum of 592 million yuan (S$128 million), or the corn it was supposedly used to purchase. He is also to supply full details of the status of another 337 million yuan worth of accounts receivable.

Because of these unverifiable transactions totalling 929 million yuan, PricewaterhouseCoopers (PwC) was unable to complete its audit of China Sun's FY2008 results back in March. Trading of its shares have been suspended since.

KPMG was then called in to conduct an independent review. But on Monday, China Sun's IDs defied opposition from the EDs and made public details of how this second audit too had been impeded by missing records.

Emails between the EDs and IDs since Monday, released yesterday, showed heightened tension.

Regarding Wednesday's board meeting, Mr Sun said that 'any meeting or tele-conference would be invalid and any resolution ineffective'. But the company secretary disagreed, saying: 'Being the CEO and controlling shareholder of the company does not give you a right to unilaterally cancel a duly convened board meeting.'

Prior to that, Mr Sun also told the company secretary not to release any announcement without the EDs' approval, or risk 'disciplinary proceedings or dismissal'. Noting this 'with great abhorrence', the IDs urged the EDs to 'refrain from threatening the professionals who are working with the IDs in the proper discharge of responsibilities'.

In Monday's release, Mr Sun expressed 'shock' and reiterated that the company would 'pursue legal action' against the IDs, if losses or expenses were incurred due to 'confusion or concern over the announcement'.

Countering that they too 'have been greatly alarmed by (his) change of factual account', and his 'casual and cavalier attitude', the IDs said that, besides a delay in providing details on the transactions, Mr Sun also has yet to submit proposals regarding the repayment of convertible bonds, and bondholders have not been able to contact him or the CFO since February.

Mr Sun's intention to remove 'telling details relating to the stolen truck and missing account records' from Monday's statement would have meant 'misleading the shareholders and investing public', the IDs said.

They added that they would 'use their best endeavours to safeguard the interest of shareholders'.