The tumultuous bicycle riding-sharing startup oBike Singapore has found itself in yet another scandal with recent police investigation, after news emerged last month that the company transferred S$10 million (US$ 7.3 million) to its Hong Kong office before calling a halt to its Singapore’s operation, as reported by Channel News Asia.
Yesterday, Minister of Law and Home Affairs K Shanmugan has confirmed the police investigation in a written parliamentary reply to Dennis Tan, the Workers’ Party’s Non-Constituency Member of Parliament, who demanded clarity of possible investigation by the Commercial Affairs Department. However, Shanmugan declined to comment further on the matter.
Just last month, FTI Consulting as oBike’s liquidators confirmed the company transferred a total of S$10 million out of the S$12 million (US$8.7 million) they collected from Singapore users’ deposits to its Hong Kong office right before it exited Singapore in June.
The money was acquired against a loan of S$11 million (US$8 million) from oBike Hong Kong to its Singapore office. However, FTI Consulting agrees that an investigation should take place given the financial position of the company which owes its Singapore users S$8.9 million (US$ 6.5 million) in total.
Previously, the liquidators shared a plan to issue letters of demand to oBike founder Shi Yi for the money to be returned.
e27 has reached out to oBike for comments.
Image Credit: oBike