KUALA LUMPUR (April 20): Lingerie maker Caely Holdings Bhd has confirmed that the Malaysian Anti-Corruption Commission (MACC) has issued a freeze order on all the operational bank accounts of the company and its subsidiaries.
In a reply to a query from Bursa Malaysia on Wednesday (April 20), Caely clarified that 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.
On Monday, Caely announced that an authority had issued a freeze order on the bank accounts of its group of companies, but said it was unaware of any wrongdoing.
Earlier, Caely had on April 7 also 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. It had cited that one of its independent non-executive directors had received an anonymous package containing documents raising concerns on several suspicious transactions involving Caely as the circumstances leading to the forensic investigation.
It had said that it expects the investigation to be completed by May 31.
Caely's 2021 Annual Report showed that 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 in the company as at July 30, 2021.
At noon break on Wednesday, shares in Caely closed 1.5 sen or 3.49% lower at 42 sen, giving it a market capitalisation of RM107.17 million.