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Authorities investigate possible wrongdoings of ex-Midas directors, officers

PENDING moves to wind up troubled aluminium train components supplier Midas Holdings will not stop the investigation of possible wrongdoings at the company, the authorities said in a statement on Monday.

The current investigation by the Commercial Affairs Department (CAD) and the Monetary Authority of Singapore (MAS) is against its former directors and officers.

The Singapore Exchange (SGX) is also reviewing potential listing rule breaches by former directors and executive officers.

"The investigations will continue notwithstanding the application to wind up Midas. CAD, MAS and SGX RegCo will work with the liquidators if their assistance is required for the investigations," the three parties said in a joint regulatory announcement released in the evening.

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Previously in February, shareholder advocacy group Securities Investors Association Singapore (Sias) had also met with CAD and MAS officers to relay the concerns of Midas shareholders anxious about the outcome of the police reports lodged with CAD in March 2018.

The police report was lodged by the audit committee of the company over a possible breach of securities laws and other offences linked to irregularities in the group's operations in China - although at the time, these were yet to be determined.

According to Sias, the investigating authorities advised in February that the alleged irregular transactions took place in a foreign jurisdiction, which adds complexity to the evidence-gathering process and more time is thus required for investigations.