PETALING JAYA: GIIB Holdings Bhd’s independent investigative accountant Ferrier Hodgson MH Sdn Bhd (FHMH) has concluded that there is no fraud or fraudulent transactions or any misconduct by the group relating to suspicious transactions as alleged by former GIIB executive director Wong Weng Yew.
“Arising from the findings from the investigation and based on the FHMH report, there is neither ground nor the need to take any further action against the affected persons in relation to the suspicious transactions; the company’s Audit and Risk Management Committee will review further and make recommendations to improve the internal control processes of the group; and the board will seek legal advice on further matters arising (if any) before embarking on any other course or action (if any) resulting from the FHMH report,” GIIB said in a stock exchange filing today.
First, on the disposal of GIIB Rubber Compound Sdn Bhd (GRC)’s machineries to Top Rate Engineering Works, the FHMH report found that there was insufficient evidence to support the allegation that there was collusion to act to defraud GRC. The disposal was properly accounted for and disclosed in GRC’s records and were made prior to Weng Yew joining the board of the company in February 2021. The record keeping and maintenance of documentation by the group should be substantially improved.
Second, on Big Wheel Green Tyres Sdn Bhd (BWGT)’s attempts to dispose of its tyre retreading business to Looe Chee Keong from year 2018 to date and settlement of dispute amounting to RM2.68 million and RM5 million respectively, the FHMH report said all the alleged amounts arising from the disposal of assets of BGWT to Looe and settlement of amount owing from Looe arising from the related agreements were properly accounted for.
Third, on Goodway Marketing Sdn Bhd (GMSB)’s arrangements and transactions with Project A Automotive Sdn Bhd (PAA) from time of commencement until to date which involves renovation costs by GMSB amounting to RM62,000, rental deposits and utilities amounting to RM16,000, the FHMH report said the alleged fraudulent transactions with PAA and unsubstantiated payments have been captured in GMSB’s balance sheet and appeared to be recorded correctly. There was no evidence substantiating the alleged fraudulent transaction, and the alleged unsubstantiated payments were supported by authorised internal memorandums substantiating and approving the payments.
Fourth, on advances made by Wong Ping Kiong to the GIIB Group from 17 March 2020 to date, the report said the alleged advances or overpayment of salary made to Ping Kiong was not an overpayment of salary but rather an accrual of salary. There was, however, an overpayment of advances during the rights shares set off arrangements and this can be set off against the accrual of salary. There was also no breaches of any law or regulations nor any misconduct by the company as the payment was properly substantiated. There is an amount of RM138,401 to be returned from Ping Kiong.
