KUALA LUMPUR (Oct 11): Perak-based lingerie manufacturer Caely Holdings Bhd's new board of directors, led by executive chairman Ng Keok Chai, has instructed its solicitors to serve a demand on Virdos Lima Consultancy (M) Sdn Bhd, seeking the return of full documentation of its wholly-owned subsidiary Caely (M) Sdn Bhd (CMSB) handed to Virdos Lima by Caely's previous management for purposes of conducting a forensic audit into allegations of suspicious and irregular transactions at CMSB in April.
The new board also wants Virdos Lima to provide a list of the alleged documents, which are said to have stalled the progression of the investigation.
In June, two months after its appointment as forensic auditor, Virdos Lima had called it quits, saying it could not continue with its forensic audit as critical information was not available. It had said key documents such as, but not limited to, invoices, payment vouchers, receipts, and agreements could not be located. On top of that, various company's electronic devices that were assigned to key suspects in its investigation had been removed and/or could not be located at the premises of Caely.
"Caely has instructed its solicitors to issue and serve a demand on Virdos Lima to immediately deliver, return and produce the full documentation of CMSB handed to Virdos Lima by the previous management for purposes of conducting the forensic audit and all draft reports/findings prepared by Virdos Lima and to provide a list of the alleged documents which are said to have stalled the progression of the investigation," said Caely in a filing with Bursa Malaysia on Tuesday (Oct 11).
Caely noted that the present management of the group also recently discovered that Virdos Lima had on April 7 emailed a draft report of its investigation findings to Caely and/or CMSB through the previous board for discussions.
On Oct 5, Caely announced that its new board had lodged a police report against 12 of its former directors, requesting the police to investigate any possible element of crime and suspected misappropriation of funds amounting to RM30.55 million that had caused Caely losses and also the concealment of malpractice by members of its previous board.
The former directors under police investigation were identified as Datuk Wira Louis Ng Chun Hau, Caely's founder and former executive director Datin Fong Nyok Yoon, Fong's husband Datuk Chuah Chin Lai (who was the group's managing director from October 2002 to April 2021), Siow Hock Lee, Ooi Say Teik, Hem Kan @ Chan Hong Kee, Ng Boon Kang, Tan Loon Cheang, Lim Chee Pang, Lim Say Leong, Beh Hong Shien and Gok Ching Hee.
On Oct 7, Chun Hau, who was executive chairman of Caely from February 2021 to May 2022, said that upon discovery of the alleged misuse of company funds by certain former directors of Caely — which he said happened before his appointment as Caely's non-executive chairman on Dec 8, 2020 — he took swift action to initiate investigation into the allegation by appointing Virdos Lima to carry out the forensic audit.
Caely shares closed 0.5 sen or 1.79% higher at 28.5 sen on Tuesday, bringing it a market capitalisation of RM73.6 million.