KUALA LUMPUR (Sept 19): Bursa Malaysia Securities has publicly reprimanded Dataprep Holdings Bhd and five of its directors for breaches of listing requirements over the IT company's reply to an unusual market activity (UMA) query on its Covid-19 screening contracts in March 2021.

In response to the UMA query on March 1, 2021, Dataprep had stated that it was unaware of any corporate development relating to its business and affairs, including those in the stage of negotiation or discussion, that had not been previously announced which might account for the UMA.

“The UMA response was not factual, inaccurate and did not contain sufficient information for investors to make informed investment decisions,” said Bursa Securities in a statement on Tuesday.

It noted that Dataprep had denied knowledge of the negotiation on the proposed acquisitions of certain companies to undertake contracts to provide an integrated solution technology for Covid-19 screening to the Ministry of Health, although the proposed acquisitions had been approved in principle by the board on Feb 17, 2021.

“Approximately two weeks after the UMA response, Dataprep had announced a memorandum of collaboration to undertake the proposed Covid-19 screening contracts on March 12, 2021 and the proposed acquisitions on March 15, 2021,” the exchange operator said.

The five directors, who were also fined RM100,000 each, are non-independent and non-executive chairman Datuk Mohd Rizal Mohd Jaafar, managing director Mohamad Sabir Mohamad Sabri, and independent and non-executive directors Datuk Abdul Aziz Ishak, Nor Adha Yahya and Ong Kuan Wah.

Bursa Securities said the finding of breach and imposition of the penalties were made upon completion of due process and after taking into consideration all facts and circumstances of the matter.

"Bursa Securities views the breach seriously as the requirement to ensure timely and accurate disclosure of material information is fundamental to ensure the investors and public are kept fully informed of and have equal access to all material information to facilitate informed investment decisions.

“This is critical towards building and maintaining corporate credibility, market integrity and investor confidence,” it stressed.

Shares in Dataprep have fallen 30.43% since the beginning of this year. On Tuesday, the counter closed unchanged at 16 sen, valuing the company at RM114.6 million.