Koyo International's managing director being investigated by Singapore authorities

SINGAPORE - Catalist-listed engineering service provider Koyo International said its managing director is being investigated by the Monetary Authority of Singapore (MAS) and the white-collar crime buster Commercial Affairs Department (CAD).

Mr Foo Chek Heng, who is the founding member of the Koyo Group, was interviewed by MAS and CAD for possible offences under the Securities and Futures Act, said the company in a Singapore Exchange filing on Wednesday night (Feb 10).

Mr Foo has also handed over his travel documents as well as certain devices and documents to the authorities.

The company said Mr Foo disputes the allegation by the authorities and will cooperate fully with them in their investigation.

"The business and operations of the company are not affected by this investigation and will continue as normal," said Koyo.

SGX last month issued a warning on trading irregularities in the company's shares.

A small group of individuals was responsible for 60 per cent of its share trading between last Oct 26 and Jan 14, during which the price remained largely resilient against the sell-off that hit the overall market, the SGX said in a statement then.

Koyo shares plunged more than 80 per cent after the warning.

It was trading at 6.2 cents at 11.09 am on Thursday (Feb 11), 8.82 per cent down from Wednesday's close.

kohping@sph.com.sg