YuuZoo Networks Group Corp. (YNG) will stop all of its operations in Singapore and its workers are set to be terminated because of the ongoing trading suspension. The online media company's CEO has handed his resignation letter as well citing the suspension.
The closure is said to be the direct consequence of the suspension and added that the firm could no longer pay the salaries of its employees including the CEO. As per The Straits Times, YuuZoo stated that this happened because the company was not able to access its cash funds as they were seized by the Inland Revenue Authority of Singapore or IRAS.
After the IRAS did not find any tax debts, the funds were reportedly returned months later and they were credited back through a cheque. However, despite the funds being repaid, YuuZoo still can't access the money as the company's bank closed its account and denied the request to open a new account.
The company further stated that it also tried to open an account in other banks in Singapore but it was denied too. YuuZoo has no means to raise new funds so it was forced to halt operations and layoffs followed.
"The continuation of the operations in Singapore has however been made impossible by the seizure of all funds, the refusal by IRAS to return them in a manner that would enable the company to make use of them, the continuation of the SGX-imposed share suspension and the SGX requested CAD investigation," SBR quoted the company's spokesperson as saying.
In any case, YuuZoo took steps to keep the company going and the first thing it did was to write to the Singapore Exchange. It requested for the cancellation of the company's share trading suspension so they can start raising new funds. Once lifted, shareholders will be able to make necessary trading decisions too.
YuuZoo's trading suspension was imposed last year. It is being investigated by the Commercial Affairs Department (CAD) and it raided the YuuZoo's offices in Singapore in April 2018. Documents related to the financial years 2013 to 2016 were confiscated and some of the management staff were interviewed.
"The CAD investigation, which soon has been going on for a full year, has not revealed any wrongdoing by the company," YNG, YuuZoo's parent company said. "The company since the beginning of the investigation has shown it has not committed any breach of the rules SGX asked CAD to investigate."
Meanwhile, since the company was not able to resolve the issues, two of its directors - Joseph Lee and Brendan Goh - quit in January and this month, the chief executive officer at YuuZoo, known only as Mr. Mohandas has resigned too. While the company in Singapore is halting the business, the other offices stationed worldwide will remain in operation.
