ComfortDelgro’s Australia unit investigating allegations of fraud after documents leaked to media

SINGAPORE – ComfortDelGro Corporation (CDG) on Feb 17 responded to allegations of scams and fraudulent taxi transactions involving its Australian subsidiaries A2B Australia and Cabcharge Payments, following reports in The Sydney Morning Herald, The Age and 60 Minutes over the weekend.

In a statement filed on the Singapore Exchange on Feb 17, CDG’s board of directors said the company has a zero-tolerance policy towards fraud and misconduct.

A2B is now investigating the matter with external legal counsel and has contacted Nine Entertainment, the owner of the three Australia media platforms, to reserve its legal rights, the statement said.

CDG said it will monitor the situation and provide updates on material developments where necessary.

The media reports alleged that a leak of confidential files from A2B, Australia’s largest taxi company, revealed fraud involving its Cabcharge taxi payment and booking systems, and lapses in the company’s compliance practices and fraud detection and prevention.

They alleged that many cab drivers are scamming their customers by exploiting loopholes in the terminal and payment systems. The allegations included the defrauding of dead people’s accounts and even of police officers.

They also reported that A2B chief executive Nick Yap had been warned of the situation by two outgoing compliance officials since the middle of 2024.

Cabcharge is a subsidiary of A2B. 

In an e-mailed statement to The Straits Times later on Feb 17, an A2B spokesperson said that it “categorically rejects the false and misleading claims made by 60 Minutes, The Age and The Sydney Morning Herald that the company benefits from fraud”, and is considering legal action.

“The claims made by 60 Minutes and its associated media outlets are not only misleading but also fail to acknowledge the extensive reforms A2B has introduced to prevent fraud in the taxi industry. Due to the serious inaccuracies in these reports, we are considering legal action and cannot comment further,” the spokesperson said.

It added that it has implemented measures to prevent fraud since it was acquired by CDG. These include two-factor authentication on Cabcharge cards and the introduction of technology that eliminates manual fare pricing, requiring all payments to go through the taxi meter.

CDG, a long-time shareholder of A2B, took the Australia-listed company private in December 2023, after acquiring the remaining shares it did not own for A$165 million (S$140 million).

CDG shares closed at $1.35 on Feb 17, down by three cents or 2.2 per cent.