KUALA LUMPUR (March 10): Classita Holdings Bhd’s incumbent board of directors is distancing itself from the RM30.7 million misappropriation of funds that is currently under police investigation.

The group, formerly known as Caely Holdings Bhd, said in a media release on Friday (March 10) that the alleged abuse of funds involving its subsidiary Caely (M) Sdn Bhd were done via transactions between 2013 and 2021, before the appointment of the current board of directors.

“As soon as they were successfully appointed by the company on Aug 29, 2022, the board took immediate actions within reasonable measures to safeguard the company and the shareholders’ interest,” it said.

Classita said its forensic auditors Virdos Lima Consultancy (M) Sdn Bhd has indicated that the latter’s audit will be able to continue with support from the new board, including providing the necessary documentation relevant for their investigation into the alleged misuse of funds, which mainly took place from 2013 to 2021.

“The board will do their best to recover whatever losses caused by the wrongdoings of the responsible parties involved in the systematic misappropriation,” it said.

On Wednesday, the police disclosed that it has launched an investigation into businessman Victor Chin Boon Long’s alleged involvement in misappropriating RM30.7 million in Caely (M).

The police said it has opened an investigation paper following a media report alleging Chin as making use of enforcement authorities in taking control over Malaysian corporates.

Classita’s statement on Friday made no mention of Chin, who is neither a shareholder nor director in the group, according to the latest annual report.

Shares of Classita closed 1.5 sen or 6.25% higher at 25.5 sen on Friday, giving it a market capitalisation of RM86.45 million.

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