oBike Being Investigated for Misappropriation of Funds


Bike-sharing startup oBike Singapore was investigated by the Singapore police for alleged misappropriation of funds. oBike had decided to shut its operations in Singapore in June 2018, however, according to the news, oBike transferred S$10 million generated from its users in Singapore to its Hong Kong office beforehand.

FTI Consulting, oBike’s liquidators admitted that of the S$12 million the company made during its operation in Singapore, the S$10 million was transferred and it was among the inappropriate transactions oBike had made, due to its financial position factor.

As cited from ChannelNewsAsia in August 2018, Senior Managing Director of FTI Consulting James Taylor stated “We can look at unwinding that transaction to say ‘no, you do owe the money to oBike Singapore and you need to pay the money to oBike Singapre’, that’s what we have communicated”

In the middle of ongoing investigations by the Singapore police, K Shanmugan, Law and Home Affairs Minister refused to give any comments regarding this matter as he respects the investigations which later would reveal further pieces of evidence.

According to Taylor, the bike-sharing company owes to its users in Singapore as much as S$8,9 million. In response to this, the FTI Consulting would issue letters of demand to request Shi Yi, as the owner of oBike, to return the money and ensure everyone has the rights to file their claims.

 

 

Source: Channel News Asia


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Nadya Yolanda Moeda
A former travel blogger who is now a full time consultant & loves to write about everything under the sun

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