Midas Holdings probe widens to China

The woes of mainboard-listed Midas Holdings continue to mount with the Singapore Exchange yesterday disclosing that investigations into the scandal-hit railway-parts maker has widened to include authorities in China and Hong Kong.

In an update on its own investigation, the market operator's regulation arm SGX RegCo said it has engaged with the Chinese Embassy in Singapore in relation to communications with the authorities in China on developments at Midas.

"Relevant authorities in China, Hong Kong and Singapore are already investigating the case and SGX RegCo understands this process will require due deliberation and time. We are taking every step possible within our powers, and will extend full cooperation to the relevant investigating authorities," it said.

Midas is already under probe by Singapore authorities, including the Commercial Affairs Department (CAD) which has ordered the company to hand over financial documents.

Trading in Midas shares has been suspended since Feb 9, after several cases of litigation, enforcement orders and court documents involving various subsidiaries and associate companies based in China were uncovered. The company said then that sums of money and shares in subsidiaries had been frozen by Chinese courts. On Wednesday, Midas announced it had defaulted on US$1.05 million (S$1.4 million)in interest payment on medium term notes.

A version of this article appeared in the print edition of The Straits Times on May 26, 2018, with the headline 'Midas Holdings probe widens to China'. Print Edition | Subscribe