KUALA LUMPUR (Oct 6): Caely Holdings Bhd has lodged a police report against 12 of its former directors for alleged misappropriation of funds amounting to RM30.55 million involving its wholly-owned subsidiary Caely (M) Sdn Bhd (CMSB) during their tenure.
In a bourse filing on Wednesday (Oct 5), the Perak-based lingerie and apparel manufacturer said its newly appointed board of directors has lodged a police report against the 12 board members led by then chairman Datuk Wira Louis Ng Chun Hau, over alleged misappropriation of funds amounting to RM30.55 million involving CMSB during the tenure.
"Caely has vide a firm of solicitors on Oct 5 lodged the police report and requested the police to investigate any possible element of crime and the suspected misappropriation of funds that have caused losses to Caely and also the concealment of malpractice by members of the previous board," it added.
In the filing, it did not name the former board members except to say that they "include those who were on board up till Aug 29 prior to the appointment of the current board".
However, when contacted by The Edge, a Caely spokesperson identified the former directors under police investigation as Chun Hau, Caely's founder and former executive director Datin Fong Nyok Yoon and her 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.
Reference was made to a lawsuit filed at the High Court of Ipoh on Aug 26, which is pertaining to the alleged misappropriation of funds mainly by Fong and Chuah in relation to an amount of RM30.55 million.
A Kuala Lumpur High Court ruling in Aug 29 saw Caely's new board now comprising Leong Seng Wui, Datuk Kang Chez Chiang, Ng Keok Chai and Krishnan Dorairaju as directors of the company, and the removal of its former executive director Datuk Mike Loh Ming Choon, Datuk Seri Sin Hock Min, former executive vice-chairman Datin Seri Jessie Wong Siaw Puie, Koo Chen Yeng, Datuk Mohamad Hanafiah Zakaria, Ng Mei Choo and Datuk Koh Mui Tee.
Apart from Leong, Kang, Keok Chai and Krishnan, Caely has since appointed three others — Chong Seng Ming, Datuk Mior Faridalathrash Wahid and Kenny Khow Chuan Wah — to the group’s board, bringing the total board members to seven.
In a separate statement on Thursday (Oct 6), Caely's new board clarified that it had, in the latest police report, expressed its suspicions that there was an effort to cover up related irregularities by the previous board.
"This is because although a forensic investigation has been initiated by the previous board (led by Chun Hau) through the appointment of Virdos Lima Consultancy (M) Sdn Bhd in April, the previous board had failed to cooperate fully, abruptly resigned and appeared to be an attempt to thwart any necessary legal investigation.
"The appointment of Virdos Lima by the former board shows that the members at that time were aware of the said irregularities. As such, Caely had requested that the police investigate the elements of crime and misconduct that have caused losses to Caely and also the concealment of such wrongdoings by the members of the previous board," it added.
What the lawsuit filed on Aug 26 entails
Caely, then under Loh and six other directors, had filed a lawsuit on Aug 26 against Fong and Chuah seeking the return of RM30.55 million allegedly misappropriated from CMSB through 10 questionable related-party transactions. The suit further alleges that Fong and Chuah, with the help of 10 other shareholders, also conspired to cover up the misappropriations and breaches of fiduciary duty, and obstruct the group’s further in-depth investigations by attempting to remove the directors by calling for an extraordinary general meeting and appointing their nominees to the board.
Those named in the suit as defendants were Leong, Datuk Seri Goh Choon Kim, Chin Boon Long, Datuk Chong Loong Men, Kok Kwang Lim, Valhalla Capital Sdn Bhd, Hong Seng Capital Sdn Bhd, Goh Choon Heng, Luhur Sejahtera Sdn Bhd and Zaidi Zainudin.
Caely shares closed unchanged at 29 sen on Thursday, valuing the group at RM74.89 million.