KUALA LUMPUR (June 19): GIIB Holdings Bhd said the Malaysian Anti-Corruption Commission's (MACC) investigation involving the group concerned an invoice for the sum of RM24,000 issued by its 51%-owned subsidiary GIIB Healthcare Products Sdn Bhd over the sale of gloves.

GIIB said the gloves were sold to A2 Gloves Sdn Bhd and the amount invoiced was collected by GIIB on behalf of GIIB Heathcare, the group said in a bourse filing on Monday (June 19).

The rubber compound manufacturer was providing additional details sought by Bursa Malaysia in connection with the MACC's action to remand three directors of GIIB to assist in an investigation in relation to the issuance of an invoice and proceeds banked into GIIB's account, inflation of debts of a subsidiary in an announcement, and unauthorised payments to persons unknown.

GIIB said the debts alleged to be inflated involved GIIB Healthcare in respect of its trade payables, non-trade payables and provision of payables. A complaint was filed by GIIB on May 29 for its interim financial results for the quarter ended March 31, 2023.

“The alleged unauthorised payments are in regard to the payment of RM30,000 and RM500,000. However, the company has no information on the nature of payment, details of the recipient and payer and/or other supporting documents or proof,” said GIIB, adding that it is unable to take any action due to lack of information.

On the RM24,000 transaction, the group said it has obtained legal opinion and concluded that the transaction was legal and did not breach any laws.

“The company is requesting its external auditors to review the position of GIIB Healthcare’s liability as at the balance sheet date in question,” said GIIB.

Last month, GIIB announced that its executive chairman Tai Boon Wee, together with two executive directors Tai Qiyao and Wong Ping Kiong, had been remanded by the MACC.

On Monday, GIIB clarified that the three directors were released by the MACC on June 2. Additionally, it said there was no financial and operational impact arising from the investigation.

This is not the first probe against the group by the MACC. Earlier this year, the agency had charged both Boon Wee and Wong under Section 18 of the MACC Act for allegedly furnishing fake documents to auditor Grant Thornton Malaysia PLT.

Separately on Monday, GIIB announced the appointment of Tan Sri Robert Phang Miow Sin as its executive advisor. He will be advising GIIB’s management in areas of law enforcement, communication with authorities, business networking and relations with China and other countries.

Phang was on the panel of advisors for the MACC and a council member of the Malaysia Crime Prevention Foundation.

Shares of GIIB hit a one-year high of 14 sen on Monday. The stock closed 3.5 sen or 36.84%, higher at 13 sen, valuing the group at RM73.02 million.