KUALA LUMPUR (May 31): Two former directors of MMAG Holdings Bhd’s (KL:MMAG) 95%-owned air cargo logistics unit, M Jets International Sdn Bhd (MJets), have been charged with dishonest misappropriation of property.
MMAG notified the bourse of the matter after receiving a letter from the Malaysian Anti-Corruption Commission on Gunasekar Mariappan and Philip Phang Kin Ming being charged at the Shah Alam Sessions Court.
According to the transportation and logistics firm, Gunasekar and Phang were slapped with seven charges under Section 403 of the Penal Code — concerning dishonest misappropriation of property — read together with Section 34 of the Act.
“The company wishes to reiterate that at all material times, it had taken immediate steps to safeguard the interests of the group,” MMAG said in the filing.
Details of the charges were not disclosed in the filing. Court document checks could not be conducted via the e-court system as the matter is a criminal proceeding.
Recall that back in February 2022, MMAG suspended Gunasekar and Phang, pending the outcome of an investigation by the anti-graft body following a raid on MJet’s office.
Later in April that year, the pair were subsequently removed from their posts at MJet and sued by MMAG for alleged breach of fiduciary duties. In the suit, MMAG sought special damages of RM23.17 million plus interest from the duo.
Gunasekar and Phang countersued MMAG and its directors in July 2022, claiming RM49.85 million, alleging the group and the board conspired to injure the duo’s investments in MJets.
For the financial year ended March 31, 2024 (FY2024), MMAG bled further mainly due to higher operation costs in its air freight segment. The group’s net loss for the 12-month period expanded to RM109.16 million versus RM73.83 million a year earlier.
Meanwhile, annual revenue grew 16.6% to RM492.23 million from RM422.1 million previously.
The latest 12-month period in the red extended MMAG’s loss streak to 10 consecutive financial years. Its balance sheet as at March 31 showed a negative reserve of RM217.6 million, compared to RM170.29 million a year ago.
MMAG’s sole substantial shareholder is Chan Swee Ying, who holds a 25.49% stake in the logistics outfit. Chan is an alternate director to her husband, executive director Chin Boon Long.
Shares in MMAG ended half a sen or 1.67% higher at 30.5 sen on Friday, valuing the company at RM508.84 million.
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