KUALA LUMPUR (March 24): Erdasan Group Bhd (KL:ERDASAN) announced on Sunday that its officers had blown the whistle to the Malaysian Anti-Corruption Commission (MACC) regarding potential misconduct by suspended executive director Mak Siew Wei.

The MACC on Saturday issued a press release seeking information from members of the public on the whereabouts of Mak to assist in an investigation.

In a filing with Bursa Malaysia on Sunday, Erdasan said its company officers volunteered the relevant information to the board of the company following investigations done by the MACC.

This prompted the board of directors to convene a special meeting on March 11, after which they decided to suspend Mak, as announced on the same day.

Following the action, Erdasan filed a civil suit against Mak in the High Court of Shah Alam last Friday, alleging equitable fraud diverting RM46.47 million of company funds to various third parties without valid justification.

The company is also 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.

“In view of the press release [by the MACC], the company has taken measures to ensure personal safety of the whistleblowers,” it said in the filing.

Trading of Erdasan shares was suspended until 10am on Monday, following the announcement.

Erdasan’s share price hit a low of 7.5 sen a share after trading resumed, before closing 11.11% lower to 8 sen, giving it a market capitalisation of RM18.30 million. The stock is down 44.83% this year.

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