When you ask them, some people say you should never trust car dealers. Others are confused why you’re suddenly asking them such questions when you don’t know them.
Here in Singapore, selling a car can be a tough task. Astronomical prices for new cars, and even for some second-hand cars, are enough to put off the most profligate consumers.
As a result, businesses end up losing lots of money.
EuroSports Global, for example, a luxury car distributor in Singapore, reported losses of S$3.9 million in 2018, and S$178,000 in 2019.
They made a S$2.3 million profit last year, but now they have a slightly bigger problem to deal with.
Local Luxury Car Distributor’s CEO Under Investigation by CAD
Melvin Goh Kim San, EuroSports’ executive chairman and chief executive, is being investigated by the Commercial Affairs Department (CAD).
The company has also been ordered 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.
Mr Goh is being investigated under the Securities and Futures Act, and was at CAD’s office on Wednesday (4 Aug).
Mr Goh’s phone has been retained by CAD, and he’s voluntarily surrendered his passport to them as well.
He has also “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 for the time being.
This means that while he can give advice on ongoing projects, Mr Goh will not exercise any executive powers.
“Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company,” the firm said in its media release.
Sells Lamborghini, Pagani, Alfa Romeo, and Touring Superleggera
According to its website, EuroSports was established in 1998, specialising in the distribution of ultra-luxury and luxury automobiles.
It distributes cars from brands like Lamborghini, Pagani, Alfa Romeo, and Touring Superleggera.
It also provides after-sales services.
What Does the CAD Do?
For those who don’t know, the CAD conducts enquiries and investigations into major complaints of financial and commercial frauds and abuse.
It is the principal agency that safeguards Singapore’s integrity as a financial and commercial centre.
While it has intelligence in the Singapore Police Force, it’s also equipped with its own investigative resources.
It’s unclear what offence EuroSports is being investigated for, but it’s likely of a financial or commercial nature.
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Featured Image: Facebook (EurosportsGlobal)