ACCOUNTING FRAUD UPDATE:EX-DELISTED POLYMATE HOLDINGS BHD
Recently, the KL Sessions Court has convicted Ng Kim Weng of submitting false statements to then Malaysian Securities Exchange Bhd (now Bursa Malaysia Securities Bhd).
The Securities Commission (SC) said in a statement, Ng’s conviction on Oct 20 followed his guilty plea to the offence which falls under section 122B(b)(bb) of the Securities Industry Act 1983 (SIA).
“As group managing director of Polymate Holdings Bhd at the material time, Ng had authorised the submission of false statements through the reported trade receivables and revenue in Polymate’s consolidated balance sheet and income statement for its financial year ended Sept 30, 2003,” said SC.
Ng, 57, who was also managing director of Polymate’s wholly-owned subsidiary ABI Malaysia Sdn Bhd, admitted that the figures on the consolidated balance sheet and income statement consisted of fictitious sales amounting to RM22,736,447 made to three companies which were either dormant or non-existent.
Sessions Court Judge Asmadi Hussin imposed a fine of RM300,000 (in default 12 months’ imprisonment) following Ng’s guilty plea
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Earlier reports on above case:
Reported in The Edge (7/2/07):
“Polymate Holdings Bhd’s former group managing director Datuk Ng Kim Weng was charged at the Kuala Lumpur Sessions Court on Feb 7, 2007 with furnishing inflated figures in its annual report to Bursa Malaysia Securities Bhd. Mr Ng was apprehended at his house in Petaling Jaya in the morning.”
Details:
- Ng, 55, who resigned from Polymate on Jan 27, 2005, pleaded not guilty to having knowingly authorised the furnishing of false information, namely inflated revenue and trade receivables as contained in its 2003 annual report.
- He was charged in the Sessions Court in Kuala Lumpur on Feb 7 under Section 122B(b)(bb) of the Securities Industry Act 1983 (Act 280). Polymate is the holding company of ABI Malaysia Sdn Bhd, which produces car batteries.
- Ng, who was represented by counsel Tan Hock Chuan, is alleged to have committed the offences between Jan 20, 2004 and March 5, 2004 at the Exchange Square in Bukit Kewangan.
- Securities Commission prosecuting officer Charanjit Kaur told judge Akhtar the amount falsified in the case was about RM22.7 million. The prosecuting team includes deputy public prosecutor Rozmawar Rozain.
- Sessions Court judge Akhtar Tahir fixed the trial date for Oct 8-12. The judge set bail at RM300,000 with one surety and ordered that Ng’s passport be handed over to the court.
- On conviction, Ng is liable to a fine of up to RM3 million or jailed for a term not more than 10 years or both.
Polymate was de-listed on Oct 19, 2006 after Bursa Securities decided the company had an inadequate level of financial condition to warrant continued listing.
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October 22, 2009
Tags: ACCOUNTING FRAUD IN MALAYSIA
Posted in: ACCOUNTING FRAUD/SCANDALS, Malaysia & Asia Pacific
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