KUALA LUMPUR (June 16): The board of directors of Caely Holdings Bhd said several directors and shareholders have helped fund interest-free loans to the company to pay for the staff's salaries and suppliers.
This comes after the Perak-based lingerie maker's bank accounts were frozen by the Malaysian Anti-Corruption Commission (MACC) in April.
Caely chairman Datuk Loh Ming Choon said since then, the group has been facing insufficient cash flow.
"The loans from the directors and shareholders are based on the current needs of the day-to-day operations and they will be reimbursed the money accordingly.
"The first package given by the directors and shareholders was about RM600,00 to RM700,000 to cover the salaries of factory workers and other staff," Loh said during a media briefing on Thursday (June 16).
Loh said the group's founder, Datin Fong Nyok Yoon, had lodged a report to the MACC over the wrongdoings conducted by a former director, which subsequently led to the freezing order by the MACC.
He stressed that the investigation and freezing of bank accounts are not related to any misconduct of the current board of directors.
Following the freezing of bank accounts in April, there has been an ongoing forensic audit probe into allegations of suspicious and irregular transactions.
Caely had appointed independent forensic auditor, Virdos Lima Consultancy (M) Sdn Bhd, to investigate allegations of suspicious and irregular transactions of its wholly owned subsidiary, Caely (M) Sdn Bhd, which is involved in property development, construction, sales and trading of undergarments, garments, and personal protective equipment.
However, on June 13 the group said Virdos Lima Consultancy could not continue with the forensic audit as critical information was not available.
When asked about the status of the investigation, Loh did not elaborate but highlighted that the investigation is still ongoing and the group will collaborate with the auditor to provide necessary information.
Shares in Caely finished 3.5 sen or 8.24% lower at 39 sen on Thursday, giving it a market capitalisation of RM100.71 million.