Apr 03, 2014

    Probe into Blumont, Asiasons, LionGold

    THE Monetary Authority of Singapore (MAS) and the police department are jointly investigating suspected trading irregularities in commodity companies, including Blumont Group, Asiasons Capital and LionGold Corp that together erased US$6.9 billion (S$8.7 billion) in market value in early October.

    The companies are being probed for possible breaches of the Securities and Futures Act (SFA), according to an MAS statement.

    Blumont shares plunged as much as 22 per cent to 4.5 cents, before closing 16 per cent lower at 4.9 cents, the biggest one-day decline since Dec 4.

    LionGold fell 0.7 per cent before the shares were suspended, while Asiasons declined 9.4 per cent.

    The Commercial Affairs Department asked Blumont unit G1 Investments to assist in its investigation into an alleged offence under the SFA, Blumont said in its statement.

    The police request included access to all corporate electronic data from Jan 1, 2011 to date, information-technology equipment and data-storage devices belonging to executive director James Hong and executive chairman Neo Kim Hock.

    Mr Hong has been requested to assist the police in the investigation and he has indicated that he will cooperate, Blumont said. Blumont's business operations aren't affected by the probe, the company said.

    Shares of the three commodity companies plunged at least 87 per cent over three days in early October, prompting the regulator to review their trading.