In a filing with Bursa Malaysia yesterday, GIIB said its executive chairman and CEO Tai Boon Wee and two other executive directors were remanded by MACC on May 31 to assist in investigations of unlawful activities.
The activities being investigated are in relation to issuance of invoice and proceeds banked into GIIB’s account, inflation of debts of a subsidiary company in a Bursa Malaysia announcement, and unauthorised payments to persons unknown, according to the filing.
GIIB previously named Tai’s son Qiyao and Wong Ping Kiong as the directors involved in the MACC investigation, in a filing on May 31.
“The directors have made it very clear to the investigation officer that they were never involved in any unlawful activity and the above allegations are malicious, defamatory, baseless and frivolous. The directors categorically and vehemently deny them,” the company stated in the June 15 filing.
GIIB said the directors are seeking legal advice to assist in the matter as no charges have been filed.
In a separate development, Tai transferred 45.81 million of his shares to his son, Qisheng, who is also an executive director in the company. This transfer occurred through an off-market transaction on June 13, said a Bursa filing yesterday.
The shares that Tai transferred represents a 7.75% stake in the company. Following the transfer, Qisheng, 36, possesses 67.69 million shares or an 11.45% direct ownership in GIIB. Tai, meanwhile, is left with 9.6 million shares or a 1.62% equity interest.
Not the first probe by MACC
Earlier this year, Tai and Ping Kiong were charged with the intention to deceive the principal of an auditor – Messrs Grant Thornton Malaysia PLT (GT) over the sale of machinery by the issuance of a debit note and three directors’ circular resolutions. They pleaded not guilty to the charges.
The transaction was linked to one of the suspicious transactions that was reported by former executive director Wong Weng Yew.
The sessions court has fixed Jan 15 to 17, 2024 as trial dates in relation to charges against Tai and Ping Kiong.
GIIB’s shares closed unchanged today at 9.5 sen, giving the group a market capitalisation of RM53.36 million.