oBike is under investigation for allegedly smuggling US$7.3M

Prisca Akhaya
oBike is under investigation for allegedly smuggling US$7.3M

The bike sharing company has previously been under fire for pulling out of Singapore without refunding customer’s deposits

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.

Also Read: Kinkao wants to change the way companies order catering by making it an experience

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.

Also Read: Workforce optimisation startup FriarTuck raises US$3.6M from Philips, Enterprise Singapore

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

The post oBike is under investigation for allegedly smuggling US$7.3M appeared first on e27.