CAD probes YuuZoo after SGX RegCo's report

The department required the company to give access to franchise-related documents from 2013 to 2016.

Online social network platform YuuZoo Corporation said that it is being investigated by the Commercial Affairs Department (CAD) into a potential offence under the Securities and Futures Act (Chapter 289) of Singapore pursuant to the provisions of the Criminal Procedure Code (Chapter 68, 2012 Revised Edition) of Singapore.

YuuZoo said the CAD requires the company to provide access to certain documents or information about it and its subsidiaries and associates from financial years 2013 to 2016 including all records and correspondences relating to franchises, franchising arrangements and the companies in which shareholdings interest were held.

This follows the Singapore Exchange Regulation’s (SGX RegCo) notice of compliance for YuuZoo Corporation. The regulator sent the findings of its independent auditor to CAD for possible breaches of the Securities & Futures Act.

SGX RegCo questioned the veracity of YuuZoo’s receivables from YZ Group and RM Bidder LLC, impairment of intangible assets in relation to Etisalat. The regulator also previously required YuuZoo to disclose the opinion of its statutory auditors on the veracity of its $8m income from YuuLog France, its $54.2m assets available for sale, and its $38.4m revenue from network development and franchise sales for 2017.

Moreover, YuuZoo chairman Thomas Zilliacus also received a notice from CAD about the probe into the same matter.

“As at the date of this announcement, the CAD has not disclosed to the company any further details on the abovementioned investigations. The company will cooperate fully with the CAD in its investigation and will make an announcement as and when there are further significant developments with regard to this matter,” YuuZoo said.