KUALA LUMPUR (Feb 21): ACE Market-listed MMAG Holdings Bhd has suspended the executive functions of two directors of its 80%-owned air cargo logistics unit M Jets International Sdn Bhd (MJets), pending the outcome of a Malaysian Anti-Corruption Commission (MACC) investigation.
The two MJets directors are Gunasekar Mariappan and Philip Phang Kin Ming, according to the transportation and logistics firm’s bourse filing on Tuesday (Feb 21).
Their suspension came on the heels of MMAG learning that the MACC is conducting an investigation which relates to MJets.
MMAG said the move to suspend the pair is to protect the company and MJets’ business, and to ensure business continuity.
MMAG noted that it learnt of the MACC investigation after MJets informed the company that the anti-graft body raided the unit’s office on Feb 13 for information and documents pertaining to a report lodged with the MACC.
“It was stated in the letter [received on Feb 19] that due to the MACC’s investigation, MJets’ bank accounts have been frozen,” the company added. The remaining 20% of MJets is owned by JT Aerotech Solutions Sdn Bhd.
It is worth noting that the filing did not disclose the subject of the MACC’s investigation.
According to MMAG, MJets was fully managed by Gunasekar and Phang, with the company having limited access.
“MMAG is in the midst of seeking further clarification in detail from both Gunasekar and Phang, as they are the personnel in charge of the executive functions and day-to-day running without MMAG’s involvement,” the company added.
“Further announcements shall be made in the event of material developments on this matter,” it continued.
Shares in MMAG fell half a sen or 20% at two sen each, giving the company a market capitalisation of RM36.34 million.