Monday 22 Apr 2024
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KUALA LUMPUR (June 3): Technical rubber compound provider GIIB Holdings Bhd on Friday (June 3) announced that it has filed a legal suit against seven defendants for amongst others, conspiracy to injure the company, breach of fiduciary duties and seek, inter alia, damages in the sum of RM103.58 million and any other reliefs deemed fit by the court.

The seven defendants are Wong Weng Yew, Yee Voon Hon, Yee Kwek Keong, Yap Kwee Heong, Glomaxes Latex Glove Manufacturer Sdn Bhd, Ewe Ee May and Michelle Sammy.

GIIB said it had filed the suit at the High Court via its solicitor Messrs Joseph Yeo, with the plaintiff's legal team led by Datuk Seri Gopal Sri Ram.

“Further announcement on the development of the above legal proceedings will be made to Bursa Malaysia Securities Bhd in due course,” added GIIB in its Friday bourse filing.

Wong, who previously served as an executive director of GIIB, was suspended from the position since March 28, and then terminated in mid-May, as the company alleged him of misconduct. He, however, was redesignated as a non-independent non-executive director on May 27.

According to GIIB, Wong, 38, was suspended from his executive directorship to facilitate investigations into his management and handling of the group’s glove business and accounts.

GIIB, which is involved in the manufacturing and distribution of rubber compounds and related products, recently moved downstream into glove manufacturing through its 51%-owned unit GIIB Healthcare Products Sdn Bhd. The company launched its glove manufacturing business in Nilai on May 16.

Meanwhile, another defendant, Voon Hon, is a director of both Glomaxes and GIIB Healthcare, holding a 49% direct stake in the latter.

Earlier on Wednesday (June 1), GIIB said it had delayed the appointment of an independent audit firm to look into suspicious transactions flagged by Wong, saying it is still finalising the scope of investigation.

GIIB said its audit and risk management committee is finalising the scope with shortlisted firms, and that it expects to finalise the appointment by early June. The group earlier estimated that it would make the appointment by May 31.

GIIB is in the midst of investigating the claims raised by Wong of dubious transactions in the company totalling RM11.49 million. Wong claimed the company took actions against him, after he raised questions about several transactions that he found to be suspicious in nature.

Amid the dispute, Wong and GIIB both filed police reports, with the latter informing Bursa Securities on May 23 that its external independent auditor report found “sufficient basis” to hold Wong accountable for misconduct, saying he appeared to have failed to fulfil his responsibility in spearheading the company's glove project.

GIIB’s share price finished unchanged at 10 sen on Friday, bringing a market capitalisation of RM59.13 million.

Edited ByKamarul Azhar
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