Probe on former Midas directors, officers to continue despite winding up moves

Singapore

PENDING moves to wind up troubled aluminium train components supplier Midas Holdings will not stop the investigations 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.

Previously in February, shareholders advocacy group Securities Investors Association (Singapore) 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.

In a separate statement on Mon-day, Midas provided a summary of major irregularities it had uncovered.

Most of them centred on the actions of its former chairman Chen Wei Ping - a naturalised Singaporean, who allegedly entered into loan deals, share pledges and guarantees while keeping the board in the dark.

Midas said it understands Mr Chen has been in China since November 2017.

"His exact location is unknown but can be contacted through his lawyers which represented him for his defamation suit against Midas and the current board of directors."

Another individual named in the summary is its former CEO, Chew Hwa Kwang. Mr Chew, who is in Singapore, resigned as CEO in March 2018, citing health reasons. He had claimed ignorance of undisclosed loans and guarantees and the use of his legal stamp in China.