KUALA LUMPUR (April 20): Lingerie maker Caely Holdings Bhd has clarified that the freeze order on all the operational bank accounts of the company and its subsidiaries was issued by the Malaysian Anti-Corruption Commission (MACC).
In a reply to a query from Bursa Malaysia on Wednesday (April 20), Caely said the freezing order by the anti-graft agency was never served on the company, but that it had merely received the notice from one of its banks, CIMB Bank, on April 13 that the company’s accounts had been frozen.
“The company does not have any knowledge as the freezing order (by MACC) was never served on the company. However, all the company and its subsidiary’s bank accounts maintained with the banks had been frozen,” it said.
It added that it does not have any knowledge on the length of the freezing order.
“The company has communicated with the banks to allow the company to use the monies and requested for reason for freezing the accounts. We have requested to unfreeze the accounts but we have yet to receive any response from the banks. Also, enquiries with MACC are still in progress,” it said.
“All the accounts were frozen, the company was unable to make any payment to suppliers, salary, banks or any party. The company is currently exposed to potential lawsuits and claims for breach of contracts because unable to make payment and fulfil its commitment.”
It is seeking legal advice on the courses of action that can be taken.
Caely announced on Monday that an authority had issued a freeze order on its accounts on Monday but did not identify who the authority was at the time. It also said it was unaware of any wrongdoing.
In a statement on Wednesday evening, Caely said it understands the concerns of stakeholders and is working as speedily as it can to resolve any issue arising from the freeze.
“The unfreezing or partial unfreezing of the bank accounts are our top priority. We are exploring all avenues to resolve this issue, as we need to ensure that business operations can sustain,” said its executive director and chief executive officer Lim Chee Pang.
“We take note of the order to freeze all the group’s bank accounts and wish to reassure all stakeholders that measures are being explored to ensure business continuity and sustainability.
“We are answerable to our shareholders for how the business is run. The board of directors is monitoring the situation closely too and is working with the management on unfreezing the bank accounts,” he added.
Lim also said Caely is in contact with MACC and will extend whatever cooperation or assistance needed for the matter to be resolved.
“The management is at this juncture still assessing the impact from the order to freeze the bank accounts. “We are working on the next steps, which also include measures to ensure that daily operations are not disrupted. The livelihoods of Caely employees, as well as our suppliers and vendors are at stake.”
The group will make the necessary announcements to Bursa Malaysia as and when there are further developments.
Earlier this month, on April 7, Caely announced that Virdos Lima Consultancy (M) Sdn Bhd had been appointed as forensic auditor to carry out an independent forensic audit on allegations of suspicious and irregular transactions at Caely after one of its independent non-executive directors received an anonymous package containing documents that raised concerns about several suspicious transactions involving Caely. The investigation is expected to be completed by May 31.
Caely’s Annual Report 2021 showed that as of July 30, 2021, its substantial shareholders comprised Penang-based businessman Datuk Seri Goh Choon Kim with a 21.69% stake; Caely executive director Datin Fong Nyok Yoon and spouse Datuk Chuah Chin Lai, who was the former managing director of Caely, jointly owned 13.07%; while its executive chairman and Public Gold Group’s founder Datuk Wira Louis Ng Chun Hau held a 25.26% stake.
Caely’s shares dipped 2 sen or 4.65% to close at 41 sen on Wednesday, giving the group a market capitalisation of RM107.17 million.
Source: TheEdge - 21 Apr 2022
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