KUALA LUMPUR (Oct 20): Caely Holdings Bhd’s new board of directors, led by executive chairman Ng Keok Chai, said Virdos Lima Consultancy (M) Sdn Bhd will resume its forensic audit into allegations of suspicious and irregular transactions at the Perak-based lingerie manufacturer’s wholly-owned subsidiary Caely (M) Sdn Bhd (CMSB).

In June, two months after its appointment as forensic auditor, Virdos Lima had called it quits, saying it could not continue with its forensic audit, as critical information was not available.

When contacted on Thursday (Oct 20), a spokesperson for Caely told The Edge that Virdos Lima, with support from the company’s new board of directors, will be able to continue with its forensic investigation.

“Yes, [Virdos Lima] will resume the forensic investigation. The new board will give their full support to enable Virdos Lima to continue their investigation,” the spokesperson said.

The Caely spokesperson also noted that Virdos Lima’s appointment had never been terminated, and added that the probe had only been put on hold due to the lack of information the forensic auditor had access to.

“So, now with the support from the new board to give them access to the necessary information, they will be able to continue,” the spokesperson added.

Earlier, Virdos Lima had said key documents such as, but not limited to, invoices, payment vouchers, receipts and agreements, could not be located. On top of that, various company’s electronic devices that were assigned to key suspects in its investigation had been removed and/or could not be located at the premises of Caely.  

In a bourse filing on Thursday, Caely said Virdos Lima has informed that its investigation will be able to continue with support from the new board, including providing the necessary documentation relevant to their investigation, to the extent possible.

It also said that the new board has withdrawn the legal letter of demand dated Oct 11 against Virdos Lima -- seeking the return of full documentation of CMSB handed to Virdos Lima by Caely’s previous management for purposes of conducting the forensic audit -- with immediate effect.

“The board of Caely wishes to inform that Virdos Lima had on Oct 20 presented [its] preliminary finding updates, which had been previously presented to the former directors on three separate occasions,” it added.

On Oct 5, Caely announced that its new board had lodged a police report against 12 of its former directors, requesting the police to investigate any possible element of crime or suspected misappropriation of funds amounting to RM30.55 million that had caused Caely losses and also the concealment of malpractice by members of its previous board.

The former directors under police investigation were identified as Datuk Wira Louis Ng Chun Hau, Caely's founder and former executive director Datin Fong Nyok Yoon, Fong's husband Datuk Chuah Chin Lai (who was the group's managing director from October 2002 to April 2021), Siow Hock Lee, Ooi Say Teik, Hem Kan @ Chan Hong Kee, Ng Boon Kang, Tan Loon Cheang, Lim Chee Pang, Lim Say Leong, Beh Hong Shien and Gok Ching Hee.

On Oct 7, Chun Hau, who was executive chairman of Caely from February 2021 to May 2022, said that upon discovery of the alleged misuse of company funds by certain former directors of Caely — which he said happened before his appointment as Caely’s non-executive chairman on Dec 8, 2020 — he took swift action to initiate investigation into the allegation by appointing Virdos Lima to carry out the forensic audit.

Shares of Caely ended unchanged at 28 sen on Thursday, giving the company a market capitalisation of RM72.31 million.