Midas audit committee lodges police report over irregularities

The audit committee of troubled Midas Holdings has lodged a police report with Singapore's Commercial Affairs Department over a possible breach of securities laws and other offences linked to irregularities in the group's operations in China, it said yesterday.

"The full extent of the possible breach of securities laws or other offences, or other potential breaches (if any) has yet to be determined. The audit committee will continue to take all necessary actions in the best interests of the shareholders and the group."

The audit committee comprises the company's three independent non-executive directors.

In the latest in a series of troubles faced by the railway parts maker, the company separately said yesterday that despite instructions given to its subsidiaries to remit funds to its Singapore office for the redemption of its US$30 million 7 per cent notes due last year (now extended to this year), the company has not received any funds yet.

The subsidiaries are Jilin Midas Aluminium Industries and Jilin Midas Light Alloy. Last December, note holders had agreed for Midas to redeem the notes in full on March 22 this year.

Trading in the stock has been suspended since early last month.

The company said last month that it had uncovered several litigation cases, enforcement orders and court documents involving companies within the group during the course of audit and subsequent searches by the company's counsel.

A version of this article appeared in the print edition of The Straits Times on March 30, 2018, with the headline 'Midas audit committee lodges police report over irregularities'. Print Edition | Subscribe