KUALA LUMPUR(Aug 13): Versatile Creative Bhd has issued and served show-cause letters to its managing director (MD) Datuk Wong Kong Choong @ Leong Kong Choong and chief financial officer (CFO) Tan Quok Eow relating to irregularities in payments amounting to RM2.3 million.

In a filing with the exchange today, Versatile Creative said that the duo have been given seven days from today to provide a written reply pertaining to the allegations mentioned in the show-cause letters.

They will also be suspended for 14 days from today or until further notice from the board.

Last week Versatile Creative said that the forensic audit its board ordered last month to check on some suspected payments done by the group was completed on Aug 8. The audit confirmed there were irregularities involving payments worth RM2.3 million.

The report found that these payments were approved by the MD and CFO, both of whom could not account for the RM2.3 million and failed to provide evidence as to whom the money was paid to.

Trading in Versatile Creative shares have been suspended from Aug 8, as the company has failed to submit its annual report for the financial year ended March 31, 2018 (FY18) on time.

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 Creative said then that it was unable to release the annual report on time as the company has yet to finalize its forensic audit, which was ongoing at that time.