System integrator Datacraft Asia Ltd. is under investigation by Singapore's Commercial Affairs Department (CAD), a division of the Singapore Police which deals with corporate wrongdoing, the company said in a statement last Thursday.
On Thursday, Datacraft's shares fell 8 percent from S$1.13 (US$0.64) to S$1.04 on rumors that police had the company under investigation, before company officials requested a suspension of trading in mid-afternoon.
In a statement to the Singapore Stock Exchange Thursday evening, Datacraft said: "The company has been requested by the Commercial Affairs Department of Singapore to furnish certain information. The company is fully cooperating with the CAD in their investigations."
Following the release of the statement, Datacraft asked for its shares to be allowed to resume trading. In heavy trading Friday morning, the company's shares fell as low as S$0.90, a further 13 percent fall on the overnight price.
The news of a police investigation in Singapore is the second bit of bad news to emerge from Datacraft this week. On Tuesday, the company announced a loss for its previous 12 months of operation, principally due to US$23 million [M] of unrecoverable bad debts from its operations in China.
CAD was formed to combat economic crime and to preserve the integrity of Singapore's reputation as a world-class financial and commercial hub, according to a mission statement on its Web site.