THE crisis at Sino-Environment has intensified with the management claiming that its sacked financial controller threatened the firm's survival by diverting funds earmarked for bondholders to pay professional fees.

The company maintains that the alleged actions of Mr Raynauld Liang had jeopardised 'the very existence of the company' as it meant it defaulted on the bonds as it could not pay the interest.

The startling disclosure formed part of the rebuttal made by the company's China-based management on Wednesday to a statement by independent directors Goh Chee Wee and Wong Chiang Yin. The two complained last week that they had not been consulted on Mr Liang's dismissal.

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