SINGAPORE – Luxury car distributor EuroSports Global said on Thursday night (Aug 5) that its executive chairman and chief executive Melvin Goh Kim San is being investigated by the Commercial Affairs Department (CAD).
He was at the CAD office on Wednesday, Aug 4, for investigation under the Securities and Futures Act.
“CAD has retained Mr Goh’s mobile phone as part of the investigation. Mr Goh has voluntarily surrendered his passport to the CAD,” said the company in a Singapore Exchange filing.
EuroSports, meanwhile, has been served with an order by the CAD and Monetary Authority of Singapore to produce certain documents needed for the purpose of their investigation. “The company will cooperate with the authorities in this regard,” it said.
With investigations ongoing, Mr Goh, 65, has “voluntarily agreed” to a suspension of his duties as the executive chairman, CEO and director of EuroSports. His younger brother, deputy CEO Andy Goh Kim Hup, will take over as interim executive chairman and CEO until further notice.
“Mr Goh will not exercise any executive powers but will remain at the disposal of the board of directors and the group to render advice on all ongoing projects,” the company added.
“The board assures that the business and operations of the group will not be affected and will continue as usual,” it said.
EuroSports is known for the Lamborghini, Alfa Romeo and Touring Superleggera brands it distributes here.
In 1998, Mr Melvin Goh formed Eurosports Auto to import vehicles and clinched the Lotus dealership. Three years later, the firm clinched an exclusive deal with Lamborghini.
He grew up in and around his father’s car workshop, learning how to take vehicles apart. His late father, Mr Goh Lue Tee, owned Gay Hin Enterprise in Upper Paya Lebar which sold used Datsuns (now Nissan) and Toyotas.
EuroSports reported net losses of $3.9 million for the financial year 2018, but narrowed its losses to $178,000 in FY2019. For FY2020, the group posted a $2.3 million profit.
Shares of the Catalist-listed company tumbled after trading began on Friday. At 9.10am, they were down three cents or 12 per cent to 22 cents, with a heavy 131 million shares changing hands.
On Thursday, the counter closed 4.2 per cent higher at 25 cents, for a gain of about 50 per cent to date this year.