KUALA LUMPUR (Aug 28): Sentoria Group Bhd (KL:SNTORIA) has confirmed on Wednesday the departure of its chief executive officer Datuk Loh Yuen Tuck from the company via a bourse filing. It also maintains that it does not accept Loh's constructive dismissal claim, saying it was Loh who repudiated his own service contract.
In a bourse filing, Sentoria acknowledged the ongoing dispute between the company and Loh as it announced that Loh "considers himself to have been terminated due to constructive dismissal which we do not accept and take issue" with.
"...notwithstanding our letter dated June 28, 2024 requesting his return to the office effective from July 1, 2024, Datuk Loh wilfully neglected and/or failed and/or omitted to return back to office to work. As a result of his wilful conduct, our company finds that his service contract with our company is untenable and, therefore, deemed to have been repudiated," Sentoria said.
“The board further announces that at this premise, the company also maintains that Datuk Loh has repudiated his service contract himself,” the company added.
The announcement confirmed Loh's departure from Sentoria in a report by The Edge Malaysia weekly, titled "Sentoria CEO departs on constructive dismissal, adding new twist to feud", that was published for the week of Aug 19-25. The report, quoting Loh, wrote that Loh had resigned due to constructive dismissal.
On Aug 20, Sentoria denied Loh's allegations in a bourse filing, saying his constructive dismissal claim was unfounded. It also said Loh had taken action against the company in the Industrial Court, and that it would be presenting its facts and case in court later if required. It said it had not created a situation that led to constructive dismissal, saying Loh had been suspended for an internal inquiry pertaining to his harassment of company employees, as well as other issues.
Loh, who joined the company in January, was suspended on May 29 following allegations of misconduct. At the time, Sentoria had accused him of being absent from the office without notice since May 17, misusing his position, and engaging in various misrepresentations and irregularities.
Loh's three-month suspension was cut short on June 28 when Sentoria allowed him to return to work with immediate effect, saying it had decided to resolve the issue internally by discussing with the affected parties to come to an amicable solution, instead of appointing an external inquiry team to probe the allegations against Loh.
Sentoria’s largest shareholder is Sentoria Capital Sdn Bhd (SCSB), which is controlled by joint managing directors Datuk Chan Kong San and Datuk Gan Kim Leong, with a 35.8% stake.
The Penang state secretary is the second-largest shareholder in Sentoria with a 14.29% stake, while Tan Wei Lian, executive chairman of TWL Holdings Bhd (formerly Tiger Synergy Bhd) (KL:TWL) holds 3.74% in Sentoria, which has been in the red over the last four fiscal years.
It incurred a net loss of RM62.41 million for the 18 months ended Sept 30, 2023 (FY2023). For the six-month period ended March 31, 2024 (1HFY2024), it recorded a net loss of RM25.19 million.
Shares of Sentoria, which have fallen 50% year-to-date, closed unchanged at 4.5 sen on Wednesday, giving the company a market capitalisation of RM28.03 million.