SINGAPORE – Luxury car distributor EuroSports Global said its executive chairman and chief executive Melvin Goh was told to surrender his passport amid an investigation by the Commercial Affairs Department, correcting the company’s earlier report.
The correction came in responses on Friday night (Aug 6) to queries from the Singapore Exchange.
EuroSports on Thursday night had said Mr Goh “voluntarily surrendered” his passport to CAD.
Upon query by SGX, it first said “Mr Goh was verbally asked to surrender his passport and he willingly did so” but that “Mr Goh clarified that he did not surrender his passport under any order by the authorities or the court.”
It later said on Friday night that its response was inaccurate and should have read, “Mr Goh was asked to surrender his passport” under the Criminal Procedure Code.
It called the error “regrettable” and said Mr Goh apologises for it.
Mr Goh is being investigated under the Securities and Futures Act. The Straits Times understands the probe revolves around a deal four years ago to acquire shares in SS Ventures, the Hong Kong firm behind a taxi-hailing app called Flytaxi. EuroSports’ shares rallied following the announcement, but the proposed acquisition did not materialise, with a memorandum of understanding lapsing after August 2017.
SGX also queried EuroSports’ nominating committee (NC) on whether Mr Goh is suitable to remain as company director and executive officer.
The firm responded that Mr Goh – who voluntarily agreed to a suspension of his duties as executive chairman, CEO and director – remains as such in name only. His younger brother, deputy CEO Andy Goh Kim Hup, has taken over as interim executive chairman and CEO until further notice.
“The NC is of the view that since Mr Goh will not be exercising any executive functions during his suspension, the current mitigating measures are sufficient for the time being. In the event there is any material change, the NC will review the status of Mr Goh,” it added.
In response to the same query by SGX, the company’s sponsor also noted that the investigation is ongoing and to date no charge has been issued on Mr Goh.
“As such, there is nothing to suggest to the sponsor that Mr Goh is not suitable to remain as a director and executive officer of the company with suspended executive powers,” it said.
The sponsor added it may have to revise its assessment in the event that there are any developments in the investigation.
