KUALA LUMPUR (Aug 21): Zetrix AI Bhd (KL:ZETRIX) said on Thursday the High Court has allowed the company to proceed with the judicial review against a public reprimand by Bursa Malaysia Bhd (KL:BURSA).
The court has granted leave or permission to challenge last month’s decision by Bursa, which also acts as a regulator, to impose a sanction on the company and fine its seven directors, Zetrix said in an exchange filing.
“The company and the board also intend to file an application to stay the enforcement of the decision arising from the public reprimand pending the disposal of the judicial review,” Zetrix said.
In civil proceedings, judicial review requires permission from the court before they can proceed to a substantive hearing to ensure the applications are not frivolous.
On July 15, Bursa issued a public reprimand to Zetrix AI and its seven directors because announcements made on July 7, Sept 13, and Sept 14, 2023 were inaccurate, misleading and without a proper factual basis. Each director was also fined RM150,000.
Group managing director Wong Thean Soon and executive chairman Datuk Dr Norraesah Mohamad were fined RM100,000 each for misleading disclosures and RM50,000 each for not complying with Bursa’s directive to clarify the announcements.
Zetrix, formerly known as MyEG Services Bhd, announced in July 2023 that it had received a letter confirming approval from the Ministry of Finance to continue as the government's agent for collecting fees and providing online services for the Immigration Department.
However, Bursa said the announcement was false and misleading because the letter from the Ministry of Home Affairs did not support the claims.
Not only did MyEG not correct the alleged mistake, the company kept repeating the claims in announcements on Sept 13 and 14, Bursa noted, even as news reports raised concerns about the company illegally charging fees for worker permits despite its contract being suspended.
Bursa noted that there was no approval for MyEG to continue collecting government revenue from May 23, 2023 to Jan 31, 2024 and the company only secured a new tender for online foreign worker permit renewals effective February 2024.