YuuZoo being probed over possible breaches

Firm told to provide access to data for 2013-2016 financial years

Mainboard-listed online media firm YuuZoo Corp is being investigated over possible breaches of the Securities and Futures Act.

The company told the Singapore Exchange (SGX) in a filing last night that the Commercial Affairs Department (CAD) has asked it to provide access to documents or information from the 2013 to 2016 financial years.

This includes all records and correspondences relating to franchises, franchising arrangements and firms in which it has a stake.

YuuZoo chairman Thomas Zilliacus also received a notice from the CAD related to these investigations.

The company, which has an online platform offering social networking, e-commerce and games, said it "will cooperate fully".

Its announcement last night comes after the SGX referred initial findings from an independent review of YuuZoo to the authorities for possible breaches. The firm was also given another notice of compliance - its second in as many months - by the SGX on Monday.

The bourse operator suspended trading of YuuZoo's shares last month after the company missed a disclosure deadline tied to regulatory queries over its results for the 12 months to Dec 31 last year.

YuuZoo appointed Ernst & Young Advisory last October to carry out an independent third-party review after a number of claims and allegations were made against the firm.

These related to claims filed by former YuuZoo employees against its former financial controller, including two different police reports, one of which was filed over alleged extortion. Claims were also raised by the former financial controller in an e-mail sent to the SGX after his services were terminated.

YuuZoo had refuted the various statements and claims in July last year, saying that it believed a subsequent decline in its share price could be linked to the allegations.

A version of this article appeared in the print edition of The Straits Times on April 04, 2018, with the headline 'YuuZoo being probed over possible breaches'. Subscribe