KUALA LUMPUR (Jan 31): Pestech International Bhd has confirmed that two of its top executives have been charged for allegedly abetting the misappropriation of RM10.6 million related to its wholly-owned subsidiary, PESTECH Technology Sdn Bhd.
Pestech said both executive chairman Lim Ah Hock and managing director-cum-group chief executive officer (CEO) Lim Pay Chuan were charged at Shah Alam Sessions Court last Friday (Jan 27).
The charges were framed under Section 109, read together with Section 403 of the Penal Code, which states that those found guilty of misappropriation could be jailed for up to five years, whipped, and/or fined.
Ah Hock was charged with one count of the alleged offence while Pay Chuan was slapped with three charges, said Pestech in a bourse filing on Tuesday (Jan 31).
The duo “strenuously” denied all allegations and claimed trial in respect of all the charges against them, the group said.
“They will defend and clear themselves of the said charges and allegations in court, as both individuals have represented that neither of them had benefited from the payments,” said Pestech.
“The directors have provided comprehensive explanations to the board and the board, after due consideration, decided and concurred unanimously that it is not necessary to take any action against them until the court decides otherwise,” it added.
According to Pestech, the duo, together with PESTECH Technology’s CEO, were investigated on four payments amounting to RM10.6 million to a consulting company. PESTECH Technology allegedly made payments for works not rendered by the consulting company, and Ah Hock and Pay Chuan have been accused of abetting in these payments.
Pestech, meanwhile, did not disclose the name of the CEO in PESTECH Technology, which is a unit set up in 2013 and houses the group’s power generation, rail electrification and signalling businesses.
Based on the group's latest annual report disclosures, its power generation and rail electrification, signalling and communication system businesses are currently headed by Paismanathan Govindasamy.
Last Friday, Bernama reported that the case was prosecuted by Malaysian Anti-Corruption Commission (MACC) deputy public prosecutor Muaz Ahmad, while lawyer Gobind Singh Deo represented the two accused.
It was also reported that Judge Rozilah Salleh had allowed bail at RM200,000 in one surety each, and ordered them to surrender their passports to the court.
Pestech shares, which fell 62% last year, closed half a sen or 1.6% lower at 31 sen, giving the group a market capitalisation of RM307.6 million.