KUALA LUMPUR (May 27): In an about-turn, GIIB Holdings Bhd has redesignated Wong Weng Yew, whom the company terminated as executive director on allegations of misconduct, as a non-independent non-executive director.
Wong’s redesignation is effective on Friday (May 27), GIIB’s filing showed. No explanation was given by GIIB on the matter.
Wong, 38, was suspended from his executive directorship since March 28 to facilitate investigations into his management and handling of the group’s glove business and accounts.
Following an extension of the suspension, Wong on April 19 claimed that GIIB took actions against him after he raised dubious transactions in the company.
He further alleged that GIIB’s executive chairman Tai Boon Wee “directly requested” him to approve certain payments during his suspension. On April 28, Wong said he filed a police report regarding the contentious matters involving the company.
GIIB has denied Wong’s claims, pointing out that the board has not received any report on any suspicious transactions.
It subsequently filed a police report against Wong on May 19 and terminated his directorship. Later, GIIB said that Wong had made claims that “were not properly verified and approved”, and that he had not fulfilled his responsibility in handling the group’s glove manufacturing business.
The group’s audit and risk management committee also initiated a forensic investigation into the financials of the group in relation to Wong’s claims.
In particular, the suspicious transactions highlighted by Wong included sale of machinery and assets, dispute settlement, renovation costs and rentals, and alleged amounts owing from the director totalling a combined RM11.49 million.
GIIB has said it expects to appoint an independent audit firm by end-May, with forensic audit to begin in early June.
It should be noted that GIIB, which is involved in provision of rubber compound, has changed its financial year end to June 30, 2022, from Dec 31, 2021 to facilitate the investigation. Interestingly, it also launched its glove manufacturing business in Nilai on May 16.
Wong’s redesignation came just days after GIIB furnished an update to Bursa Securities, saying that its external independent auditor report found “sufficient basis” to hold him accountable for misconduct.
In relation with investigations into the matter, the company has made several appointments.
This includes consulting firm PKF Covenant Sdn Bhd, as well as Ng Keok Chai as an advisor to the company’s three-man investigative committee.
Ng, who previously served in the Royal Malaysia Police’s commercial crime investigation department, is also an independent non-executive director of CSH Alliance Bhd, Hong Seng Consolidated Bhd, and Dynamite Group Bhd, GIIB said.
Shares of GIIB settled two sen or 26.67% lower at 5.5 sen, giving it a market capitalisation of RM30.49 million.