KUALA LUMPUR (March 22): The Malaysian Anti-Corruption Commission (MACC) is seeking Mak Siew Wei, a suspended executive director of Erdasan Group Bhd (KL:ERDASAN), to assist in an investigation.

According to an MACC statement dated March 22, Mak’s last known address is No 33, Jalan PJU 8/12C, Rafflesia Damansara Perdana, 47810 Petaling Jaya, Selangor. Members of the public who know him or have information about his whereabouts are urged to contact the investigating officer, Khairul Ariffin Ghazali, at 012-3235 996 or email khairulariffin@sprm.gov.my.

The MACC did not mention Erdasan in its statement.

This comes as Erdasan, formerly known as AT Systematization Bhd, initiated legal action against Mak, alleging fraud.

In a writ and statement of claim filed at the Shah Alam High Court, Erdasan accuses Mak of equitable fraud for allegedly diverting RM46.47 million of company funds to various third parties without valid justification.

The company is seeking a declaration that Mak is a constructive trustee of the misappropriated funds, and that his assets and properties should be traced and used to recover the RM46.47 million owed. Alternatively, Erdasan is demanding the same amount in compensation for special damages, in addition to general, exemplary, and aggravated damages, along with judgement interest at 5% per annum from the date of judgement until full payment. The company is also seeking full indemnity costs.

Erdasan noted that its legal team will attempt to serve legal papers to Mak as soon as possible, although he remains unreachable.

Mak was suspended as executive director on March 11, pending an internal investigation into questionable transactions that allegedly occurred in 2020 and 2021. A board member since 2013, Mak is also the company’s largest shareholder, holding a 7.835% stake. Erdasan’s shareholding structure is otherwise highly fragmented, with most substantial shareholders holding less than 1.6% each.

Mak had previously served in executive director roles at Pasukhas Group Bhd (KL:PASUKGB), AE Multi Holdings Bhd (KL:AEM) and Trive Property Group Bhd (KL:TRIVE), stepping down from each role late last year.

In June 2020, AT Systematization ventured into the glove business via its acquisition of rubber glove manufacturer Pearl Glove (Malaysia) Sdn Bhd. The company planned to install and commission up to 20 production lines within a span of 36 months, aiming for a production capacity exceeding 3.2 billion pieces annually.

The company has been struggling with financial losses since 2016.

For the nine months ended Dec 31, 2024 (9MFY2025), Erdasan recorded a net loss of RM17.92 million, reflecting a significant widening of its financial deficit. Revenue declined by 17%, falling to RM22.98 million from RM27.72 million in the same period a year earlier.

The decrease in revenue was primarily driven by reduced sales in the fabrication and automation segment, alongside the cessation of glove-making operations.

Erdasan shares ended at nine sen on Friday, giving the company a market capitalisation of RM20.6 million.

This is a stark contrast to its peak market capitalisation of RM878 million more than four years ago in November 2020, during the glove frenzy.

In January 2024, the company undertook a 30-to-one share consolidation exercise.

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