(Adds statement from LionGold in paragraph 4-6)
SINGAPORE April 2 Executives of companies owned
by Blumont Group Ltd and LionGold Corp,
Singapore-listed firms at the centre of a penny-stock crash last
year, are being investigated by a white-collar crime police
unit, the companies said on Wednesday.
Share prices in Blumont, LionGold and Asiasons Ltd
crashed last October, wiping out around S$8 billion ($6.35
billion) in market value in just two days after huge run-ups.
The scandal led to a series of proposed reforms to the
city-state's stock trading rules.
Blumont said that its subsidiary, G1 Investments, had been
contacted by the Commercial Affairs Department (CAD) of the
police force and has been asked for all corporate electronic
data from January 2011 relating to its executive chairman, Neo
Kim Hock, and executive director James Hong.
In a statement to Singapore's stock exchange on Wednesday,
Blumont, which mainly invests in mining assets, said the
investigation is in relation to an offence under the Securities
and Futures Act without giving any further details. Hong has
also been asked to assist the CAD directly, it said.
No information was immediately available from the police.
LionGold Corp Ltd said its subsidiary, LionGold Investments
Pte Ltd, and the company has been informed by the CAD of a
LionGold has received a notice from the CAD on corporate
data belonging to Lynne Ng Su Ling, a non-executive, independent
director of LionGold, and Peter Chen Hing Woon, an employee.
The CAD's notice requires LionGold to provide all corporate
electronic data of Ng and Chen from January 2011 to now, the
"CAD has not given any further details of its
investigations. So far, the board is not aware if any offence
has been committed and has not heard from Lynne Ng Su Ling or
Peter Chen Hing Woon in respect of the investigations," LionGold
said. The company could not be immediately reached by Reuters.
In separate statements, both Blumont and LionGold said their
businesses and operations are not affected by the investigations
and will continue as normal.
Blumont's chairman, Alexander Molyneux, could not be reached
for comment and the public relations agency that acts for the
company had no comment on the developments.
($1 = 1.2591 Singapore dollars)
(Reporting by Rachel Armstrong, Anshuman Daga and Andrew Toh;
Editing by Matt Driskill and Elaine Hardcastle)