SINGAPORE - The Commercial Affairs Department has launched an investigation into mainboard-listed investment holding company New Silkroutes Group over a possible offence under the Securities and Futures Act of Singapore.

New Silkroutes was asked on Sept 24 by the CAD and the Monetary Authority of Singapore to provide certain information and documents for the probe, Dr Goh Jin Hian, New Silkroutes' chief executive and executive director, told the Singapore Exchange on Friday night (Sept 27).

One of the company's directors and certain senior management and former management executives are also assisting with the CAD's probe, he added.

On Sunday evening, a separate SGX filing disclosed that Mr Kelvyn Oo Cheong Kwan, a former chief corporate officer and executive director who had been responsible for New Silkroutes' corporate development, compliance and regulatory functions, is assisting with the CAD probe.

Mr Oo resigned from New Silkroutes on Aug 1 to "pursue personal interest and other opportunities".

Teho told SGX on Sunday that Mr Oo, who is now an independent director with Teho International, has informed the Catalist-listed oil and gas-related company of his assistance in the investigations.

The Teho board said this matter is "not related to the company or the group, and... does not affect their business and operations."

"As at the date of this announcement, the board is of the view that Mr Oo's assistance in the investigation does not compromise (his) performance of his duties professionally as an independent director," Teho said.

Dr Goh, who is the son of former prime minister Goh Chok Tong, was appointed New Silkroutes chief executive in July 2015 but is due to retire from this position on Oct 1, as announced in July this year. It was also announced then that he would take over as company chairman upon the retirement of Mr Pao Kiew Tee on Aug 1.

The current board includes executive director Mr Shen Yuyun, and non-independent non-executive director, Dr Andrew Chua Soon Kian. The three independent non-executive directors are Mrs Vivien Chen Chou Mei Mei, Mr Chua Siong Kiat and Mr Darrell Lim Chee Lek.

Dr Goh said in Friday's filing that Silkroutes' business and operations have not been affected and will continue as usual. The investigation will also "not affect the management of the group in the discharge of their respective roles and functions."

New Silkroutes will provide full cooperation to the CAD and the MAS and will provide updates on significant developments, he said.

The Straits Times understands that the CAD probe is not related to a separate matter involving possible legal action against Dr Goh for alleged breaches of his director's duties at a marine fuels supplier that had lost its operating licence and is now under judicial management amid financial stress.

Deloitte & Touche, the judicial managers of Inter-Pacific Petroleum (IPP) and its parent Inter-Pacific Group, was granted a six-month extension of the judicial management order for IPP earlier this month. The extension will give Deloitte time to consider possible legal action over alleged negligence by Dr Goh when carrying out his duties as a director from June 28, 2011, to Aug 20 last year.

Meanwhile, New Silkroutes has not been successful in trying to divest its oil trading business to focus on healthcare. The agreement for the disposal of International Energy Group (IEG) to TK Energy lapsed on June 30 last year, after the buyer failed to disburse loans to New Silkroutes Capital and IEG.

But in an April 23 update on SGX on how New Silkroutes is managing its businesses during the pandemic, the group said its energy division is "benefiting from the current situation".

It said its shipping business, "is earning higher-than-average freight rates, on the back of the demand for oil tankers required for the storage of excess oil".

The company added that it is "reviewing its organisational growth strategies to take advantage of its unique position in the healthcare space, including... in China as a manufacturer of non-woven material used in the production of medical personal protective equipment".

In its latest results released on Aug 27, New Silkroutes swung to a net loss of US$2.28 million (S$3 million) for the fourth quarter ended June 30 from a year-ago profit of US$227,000. Full-year loss came to US$1.95 million from a loss of US$684,000 previously.