SINGAPORE : The white-collar crimebuster says it is investigating Indigoz Exchange for alleged offences including fraudulent business conduct under the Companies Act.
Indigoz sells i-chqs, which are dining vouchers that can be used at about 260 restaurants and cafes in Singapore.
The Commercial Affairs Department has seized monies from its bank account that relate to the alleged fraudulent business conduct.
It did not reveal any other details, but advised holders of i-chqs to wait for further updates on the case. - CNA
Something similar came in BT today...
Retailers stop accepting i-chqs dining vouchers
SINGAPORE: Retailers have stopped accepting i-chqs, leaving thousands of those holding the dining vouchers in the lurch.
Up until Friday, i-chqs had effectively been legal tender, with over 250 restaurants accepting them at face value with an equivalent Singdollar value.
But after news broke on Thursday that i-chq issuer Indigoz Exchange is under investigation by the Commercial Affairs Department (CAD), the vouchers are, for the time being, worthless.
Indigoz Exchange first came on the retail scene in September 2000 when it launched its rewards programme.
The scheme expanded to include credit card companies, banks, insurers and retail outlets.
Customers of these could redeem their accumulated rewards points for i-chqs which in turn are redeemable at more than 250 restaurants island-wide.
The i-chqs have since become popular with diners as they can be bought over-the-counter at 7-Eleven and SingPost outlets at a discount to its "stored value".
As recently as the Christmas season, 7-Eleven, for example, was promoting them aggressively at a 40 percent discount.
NETS, which distributes the vouchers to 7-Eleven, said on Friday that it was monitoring the CAD's probe.
SingPost suspended the sale of i-chqs on Friday, advising existing holders to wait for further developments in the case.
The Consumers Association of Singapore (CASE), meanwhile, has also advised holders to wait for further notice.
CASE president Yeo Guat Kwang said: "If the vouchers are rejected by the restaurants, customers can actually take up their case with the Small Claims Tribunal against the i-chq company. But I think more importantly, for cases like this, they have to be handled carefully because I'm worried if we have more and more such cases, it will tarnish the consumer confidence in Singapore."
As for the vendors, most distanced themselves from Indigoz when contacted by Channel NewsAsia.
Many restaurants have stopped accepting the vouchers, including popular eating chain Crystal Jade.
OCBC Bank said it had not been giving out i-chqs since last June and had contacted Indigoz to remove its logo from its website.
Only HSBC said it would refund the i-chqs it gave out as an act of goodwill to its customers.
Indigoz is a company that the Economic Development Board (EDB) invested in back in 2002 under its SEEDS programme.
EDB owns a 10 percent stake but when contacted by Channel NewsAsia, it said it was unable to comment as the investigations were ongoing. - CNA