Kosmo Technology ex-directors fined, ordered to serve two years in jail over false disclosures

Kosmo Technology ex-directors fined, ordered to serve two years in jail over false disclosures
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KUALA LUMPUR (May 2): The Securities Commission Malaysia (SC) said the Sessions Court has ordered two former directors of Kosmo Technology Industrial Bhd to pay a fine of RM1.45 million each and serve a two-year jail term for furnishing false statements to Bursa Malaysia Securities Bhd.

Former group managing director Datuk Norhamzah Nordin, 54, and former executive director Mohd Azham Mohd Noor, 54, were charged in 2011 with eight counts of furnishing false statements to Bursa Malaysia in relation to Kosmo’s revenue figures in its unaudited quarterly reports for 2006 and 2007.

“The revenue figures, which ranged from RM7 million to RM40 million, were found by the Sessions Court to be false, as they contained fictitious sales,” the SC said in a statement.

Meanwhile, Kosmo’s accounts manager at the material time, Helen Lim Hai Loon, 49, was charged with abetting in the commission of the offences. Lim was fined RM560,000 and ordered to serve a one-year jail term.

“All the offences were committed under Section 12B of the Securities Industry Act 1983 and Section 369 of the Capital Markets and Services Act 2007,” the regulator added.