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DMX files police report in Singapore, alleges wrongdoing by former management

IT solutions provider DMX Technologies Group said that it has filed a police report in Singapore alleging the involvement of Singapore entities, individuals and bank accounts in certain suspicious transactions.

DMX announced through the Singapore Exchange (SGX) that those suspicions arose from further analysis of certain documents and records that had been released in Hong Kong for further investigations.

In April 2016, DMX announced that its unit had filed a writ of summons against its former management and one of its subsidiaries for irregular accounting practices in Hong Kong's High Court.

Four former executives were sued together with DMX Hong Kong and two other companies Mozart Management, and Tacoma Associates.

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According to investigations by the mainboard-listed digital media and software provider, unauthorised payments were made to Mozart by DMX Hong Kong's clients, while DMX Hong Kong had also made unauthorised payments meant to be made to its contracting parties to Tacoma between 2008 and 2012.

In the SGX statement, the company added it has been granted an order from the Hong Kong High Court on Jan 12, 2018 to release documents and records to the Hong Kong police, among other parties, to aid further investigations.

DMX said that the documents "provide evidence in support of allegations against former management for their wrongdoings".

The company said it intends to pursue to the "fullest extent possible" all its rights against the relevant parties, and will work closely with legal counsels and regulatory authorities in jurisdictions related to any of the investigations.

Shareholders are advised to exercise caution when dealing in the company's securities, DMX said.

DMX's stock has been suspended from trading since March 20, 2015.

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