Bintai Kinden to conduct internal probe on its own directors, trading activities

Monday 18 Nov 2024

KUALA LUMPUR (May 24): Mechanical and electrical engineering services specialist Bintai Kinden Corp Bhd said it will be initiating an internal investigation into the conduct of "certain directors", as well as the trading activities of the company.

However, it did not identify the directors who will be investigated.

"The scope of the investigation is set to include, but not be limited to, examining unauthorised trading of shares, potential insider trading, involvement of other directors or former company secretary, and the overall effectiveness of our corporate governance controls," it said in a filing with Bursa Malaysia on Wednesday (May 24).

Bintai Kinden, a Practice Note 17 (PN17) company, added that it has engaged an independent party to conduct the investigation.

"The company's intention is to ensure that the inquiry is impartial and thorough. The company would like to inform that the exercise is being taken seriously with the view of upholding the company's values, protecting the interest of our shareholders and the integrity of the market."

Bintai Kinden, however, gave its assurance that the company will continue to carry out its business operations as usual "under the guidance and supervision of our remaining directors and the management team".

"Further announcement on the findings and any significant developments pertaining to this investigation, will be made to Bursa in accordance with the disclosure obligations from time to time," it added.

Bintai Kinden has emerged in the spotlight in recent months. On March 29, it had slipped into PN17 status after its wholly owned subsidiary Optimal Property Management Sdn Bhd (OPM) defaulted on a RM109 million Islamic financing facility.

Following the default, the company had called on the Melaka state government to address payments amounting to RM49.8 million owed to the company for the Universiti Melaka (Unimel) project, which Bintai Kinden said was the reason for its default.

Bintai Kinden also said the PN17 classification came after MBSB Bank Bhd terminated its role as corporate guarantor to the RM109 million Islamic banking facility it had granted to OPM. In April, Bintai Kinden was slapped with two suits from MBSB Bank, one on defaulting the financing facility and another on liquidated ascertained damages.

This was followed by Bintai Kinden’s non-executive chairman Datuk Ibrahim Othman and executive director Noor Azri Noor Azerai having to force sell all their shares in the company due to margin calls.

Then in that same month (April 27), another unit of Bintai Kinden — Kejuruteraan Bintai Kindenko Sdn Bhd — was notified by Malayan Banking Bhd of the suspension of four existing banking facilities totalling RM188 million.

Since then, the company has seen changes in its boardroom, including three resignations and two new appointments. The three directors who had resigned were Ibrahim, Noor Azri and Ong Choon Lui, while the new directors are former state assemblyman for Bemban, Melaka, Datuk Ng Choon Koon and his niece Ng Siew Kim.

More recently, on May 16, Bintai Kinden announced that its group managing director Ku Chong Hong, 34, had been redesignated to executive director cum chief financial officer of the company. It also appointed Mohd Idzwan Izuddin Ab Rahman as executive director.

At noon break, Bintai Kinden shares closed unchanged at 5.5 sen, with 6.66 million shares changing hands. Its market capitalisation stood at RM45.03 million. Its share price had fallen 45% so far this year to an all-time low of four sen on March 30.

Text Size