Police investigating oBike for alleged misappropriation of funds

Police investigating oBike for alleged misappropriation of funds

abandoned obike
OBikes outside White Sands mall in Pasir Ris on Aug 1, 2018. (Photo: Matthew Mohan)

SINGAPORE: The police are investigating oBike Singapore for misappropriation of funds, after it emerged last month that the company transferred S$10 million to its Hong Kong office before shutting operations in Singapore. 

In a written parliamentary reply on Monday (Sep 10), Law and Home Affairs Minister K Shanmugam confirmed that the police are looking into the matter. 

"As investigations are ongoing, we are unable to comment further," he said. 

Mr Shanmugam was responding to a question filed by the Workers' Party's Non-Constituency Member of Parliament Dennis Tan, who asked if oBike Singapore will be investigated by the Commercial Affairs Department.

Last month, oBike's liquidators FTI Consulting said that of the S$12 million the bicycle-sharing company had collected from Singapore users, S$10 million was transferred to its Hong Kong office before it stopped Singapore operations in June. 

The S$10 million was netted off against a loan of S$11 million from oBike Hong Kong to its Singapore office. 

“Some of the transactions are inappropriate given the financial position of the company, and we will be looking at those a lot further,” FTI Consulting’s senior managing director Joshua Taylor said previously. 

According to Mr Taylor, oBike owes its Singapore users S$8.9 million in total. 

The liquidators said previously it will issue letters of demand to oBike founder Shi Yi and ask for the money to be returned. 

Source: CNA/ng/(gs)