GOLD AND COMMODITY TRADING (Complaints)

Mr Yeo Choo Kok asked the Minister for Home Affairs, from 1st January, 1981 to the latest convenient date, (a) how many complaints of gold and commodity trading wrongdoings have been received by the Police; (b) how many of such cases have been brought to court; and (c) how many trading wrongdoers have absconded with their clients' money and left the country.

The Minister of State for Law and Home Affairs (Prof. S. Jayakumar) (for the Minister for Home Affairs): Mr Speaker, Sir, to-date, the Police have received nine complaints against gold and commodity futures trading companies. Two of them were received in 1981 while the rest were received this year.

Five of the complaints were against brokers for trading on behalf of their clients without the clients' instruction or authorization. The Commercial Crime Division of the Police Force is carrying out exhaustive investigations into the complaints. If criminal offences are disclosed, prosecution will be instituted.

Another three of the complaints were referred to the Police by the Monetary Authority of Singapore. The MAS had reason to believe that deposits placed by clients with three trading companies had been misappropriated or misused by officers of the companies. Acting on the complaints, the Police seized the books and records of the companies for examination. The three cases are still being investigated.

The remaining complaint was against four foreign directors of a commodity trading company for absconding with their clients' deposits amounting to $1.28 million. Interpol has been asked to assist in tracing the four directors.

Investigations are still proceeding and decisions on whether to prosecute any of the companies will be made after investigations are completed.

The Government takes a serious view with regard to these complaints. As was mentioned by the First Deputy Prime Minister, apart from the investigations carried out on the nine complaints, the Member for Delta would be aware of the fact that the Minister for Law has appointed four inspectors under the Companies Act to look into the affairs of 24 gold and commodities futures trading companies. On 23rd September 1982, the books and records of the 24 companies were seized. The inspectors on investigating the companies will submit a report to the Minister for Law.