MAS, CAD investigating Koyo International's managing director

CATALIST-LISTED Koyo International's managing director Foo Chek Heng is being investigated by the Monetary Authority of Singapore (MAS) and the Commercial Affairs Department (CAD), the company said in a Singapore Exchange (SGX) announcement late on Wednesday night.

It said Mr Foo had informed the company that he is being investigated for "possible offences" under section 197 of the Securities and Futures Act (SFA). It did not elaborate on what his possible offences were.

Section 197 of the SFA pertains to false trading and market rigging transactions, going by the official website for Singapore statutes.

Koyo said MAS and CAD have interviewed Mr Foo and he has handed over his travel documents and "certain devices and documents" to them.

It added that Mr Foo had told Koyo's board that he "disputes the allegation" by MAS and CAD and will cooperate fully in the investigation.

Shares of the engineering services provider crashed 84 per cent in one session in January this year after SGX warned the investing public to be careful when trading Koyo shares.

"SGX's review of the trades in Koyo showed that a small group of individuals was responsible for 60 per cent of the trading volume of Koyo shares during this period, of which at least half of these trades were due to this group of individuals buying and selling among themselves," the bourse had said.