KUALA LUMPUR (Oct 7): Datuk Wira Ng Chun Hau, who was executive chairman of Perak-based lingerie and apparel manufacturer Caely Holdings Bhd from February 2021 to May 2022, has denied the allegations of misappropriation of funds amounting to RM30.55 million involving its wholly owned subsidiary Caely (M) Sdn Bhd (CMSB) during his tenure.
"At the outset, Caely’s allegations against me are untrue, baseless, unfounded, false, and highly defamatory against me. I hereby strongly deny and refute all the allegations made therein," Ng said in a statement on Friday (Oct 7).
"Such a statement has tarnished my reputation and I shall be taking legal action against the perpetrators," he added.
On Wednesday (Oct 5), Caely announced that its new board of directors 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 that have caused losses to Caely and also the concealment of malpractice by members of its previous board.
The former directors under police investigation are Ng, 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.
Ng, however, claimed 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 had taken swift action to initiate investigation into the allegation by appointing the external forensic auditor, Virdos Lima Consultancy (M) Sdn Bhd, to carry out the forensic audit. Ng was subsequently re-designated as executive chairman of the company on Feb 23, 2021.
Ng also stated that he had given his full support and cooperation to the forensic auditor throughout the forensic audit investigation.
"After I sold my shares and resigned as executive chairman on May 13, 2022, the investigation was not abandoned as there was proper handover to enable my successor to continue the investigation.
"Further actions were also taken against the former directors who are responsible for the alleged wrongdoings by the subsequent board after my resignation. It is therefore absurd to even suggest I would cover up the alleged misuse of RM30.55 million of funds by the former directors in question or being involved in any manner or whatsoever in the alleged wrongdoings," he added.
Caely said in a statement on Thursday (Oct 6) that it had, in the police report, expressed its suspicions that there was an effort to cover up related irregularities by the previous board, comprising those who were on the board until Aug 29.
It added that although a forensic investigation had been initiated by the previous board through the appointment of Virdos Lima in April, the previous board, notably Ng, had failed to cooperate fully and abruptly resigned.
At the time of writing, Caely shares were traded down 0.5 sen or 1.75% at 28 sen, bringing it a market capitalisation of RM72.31 million.