KUALA LUMPUR (Oct 18): The former executive chairman of Perak-based lingerie and garment manufacturer Caely Holdings Bhd, Datuk Wira Ng Chun Hau, has filed a defamation suit in the High Court here against Caely and its new board, over defamatory statements in connection with misappropriated funds amounting to RM30.55 million. 

Ng was the executive chairman of Caely from February 2021 to May 2022.

A statement on behalf of Ng on Tuesday (Oct 18) said Caely had made several false and baseless allegations against the former chairman, which were defamatory in its Oct 6 press release. 

The statement claims that the defamatory statements were made with malicious intent to divert the attention of the public and authorities from the true wrongdoers to Ng. It also caused serious damage to Ng’s reputation, the statement said.

“In such circumstances, Ng is seeking damages for libel with aggravated and exemplary damages against Caely and its board of directors. Ng shall also be applying for an injunction to retrain Caely and its board of directors from further publishing the defamatory statements,” added the statement. 

On Oct 7, Ng denied the allegations of misappropriation of funds amounting to RM30.55 million involving its wholly-owned subsidiary Caely (M) Sdn Bhd during his tenure. 

His statement came after Caely’s new board of directors lodged a police report against 12 of its former directors on Oct 5, requesting the police to investigate any possible element of crime and suspected misappropriation of funds that have caused losses to Caely and also the concealment of malpractice by members of its previous board.

The former directors under police investigation are Ng, 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.

Caely’s share price was unchanged at 28 sen at the time of writing on Tuesday, with a market capitalisation of RM73.6 million. Year-to-date, the counter has fallen 20%.