Midas shareholders told investigation needs more time

An investigation into possible irregularities at Midas Holdings requires more time, given the complexities of dealing with different jurisdictions, the investor watchdog said yesterday.

The Securities Investors Association (Singapore), or Sias, gave the guidance after meeting officers from the Commercial Affairs Department (CAD) and Monetary Authority of Singapore (MAS) last week.

This was to relay the concerns of Midas shareholders anxious about the outcome of police reports lodged with the CAD that centred on possible breaches of securities laws and other offences arising from Midas operations in China.

The company is a key manufacturer of aluminium-based products for the rail transport sector around the region, particularly in China.

Sias also said the authorities have noted that the alleged irregular transactions at Midas occurred in a foreign jurisdiction, which adds complexity to the evidence gathering process and the time required for investigations.

The watchdog has urged shareholders to be patient and to allow due process to take place.

"At the same time, Sias calls on the board and management of Midas to offer all necessary assistance to facilitate the investigation process and communicate with their shareholders and stakeholders on updates periodically," it said in a statement.

The investigation was triggered in March last year when the Midas audit committee... lodged a report with the CAD, although the full extent of the possible breaches was yet to be determined.

The investigation was triggered in March last year when the Midas audit committee, comprising three independent non-executive directors, lodged a report with the CAD, although the full extent of the possible breaches was yet to be determined.

The MAS and CAD jointly investigate offences under the Securities and Futures Act and the Financial Advisers Act.

A version of this article appeared in the print edition of The Straits Times on February 20, 2019, with the headline 'Midas shareholders told investigation needs more time'. Print Edition | Subscribe