Asia Media sued by former CFO over statutory declarations

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KUALA LUMPUR: Asia Media Group Bhd has been sued by the former chief financial officer (CFO) of its subsidiary Asia Media Sdn Bhd (AMSB) over “irregularities” in the group’s statutory declarations in its financial statements for the financial year ended Dec 31, 2012 (FY12) and FY13.

“The plaintiff’s primary claim against the company is that there are irregularities in the statutory declarations in respect of the financial statements of the company for the financial years ended Dec 31, 2012 and Dec 31, 2013 on the ground that her signatures in the said financial statements have been forged,” said Asia Media in a filing with Bursa Malaysia yesterday.

The company was served with a writ and a statement of claim — both dated Sept 5, 2014 — from the former CFO, Ang Lay Chieng, on Tuesday.

Asia Media “vehemently denies” Ang’s allegations and claims, which it said were “totally baseless and motivated by bad faith”.

“The company has since instructed its lawyers to file the necessary legal defence to the claim and to further consider taking out a defamation suit against the plaintiff,” it said in the announcement to Bursa Malaysia.

The company added that further announcement of any material development on the above matter will be made as and when necessary.

Asia Media closed unchanged at 8.5 sen yesterday, putting its market capitalisation at RM101.77 million.

The company sank into the red with a net loss of RM1.67 million for the six months ended June 30, 2014 from a net profit of RM6.4 million a year ago, mainly due to higher depreciation charged and content cost. Revenue fell 48% to RM11.77 million from RM22.47 million. ­— by Levina Lim

This article first appeared in The Edge Financial Daily, on September 11, 2014.