KUALA LUMPUR (Aug 10): Versatile Creative Bhd announced today that the forensic audit its board ordered last month to check on some suspected payments done by the group, confirmed there were irregularities involving payments worth RM2.3 million.

The payments were approved by the company's managing director and chief financial officer, both of whom could not account for the RM2.3 million and failed to provide evidence as to whom the money was paid to.

The forensic audit report, done by Crowe Malaysia, was completed on Aug 8, the group said in a stock exchange filing today. "Further announcements will be made once the board deliberates on the report and decides on the next steps to be taken," said Versatile.

Early last month, Versatile suspended its MD Datuk Wong Kong Choong @ Leong Kong Choong and CFO Tan Quok Eow following the discovery of suspected financial irregularities arising from certain unauthorised payments to third parties between August 2017 and June 2018.

It then appointed Crowe Malaysia to carry out the forensic audit, which started on July 3, after Versatile Creative chairman Datuk Lee Kwee Hiang lodged a police report.

Trading of Versatile shares have been suspended since Aug 8, following its failure to submit its annual report on time for its financial year ended March 31, 2018 (FY18). On announcing the suspension at the time, Versatile said it was unable to release the annual report on time as the company had yet to finalise its ongoing forensic audit.

The suspension will only be uplifted upon issuance of the annual report, together with the FY18 audited financial statements, unless otherwise determined by Bursa Securities.

Versatile shares were last traded at 42 sen on Aug 7 for a market capitalisation of RM54.21 million.