KUALA LUMPUR (Oct 1): Steel products maker Mayu Global Group Bhd (KL:MAYU) said it has yet to receive details on the circumstances or allegations that led to the Malaysian Anti-Corruption Commission (MACC) summoning a director of its 80%-owned subsidiary, Sunrise Manner Sdn Bhd, and freezing the subsidiary's bank accounts.
In response to Bursa Malaysia’s query on the matter, Mayu Global said on Wednesday that no reasons were provided in the MACC’s notice for the investigation into Sunrise Manner director Tang Tiam Hok and the freeezing of the accounts.
It also clarified that Sunrise Manner is not a major subsidiary of the company, as defined under Bursa Malaysia’s Main Market Listing Requirements.
Mayu Global said it will obtain legal advice from its appointed counsel concerning the freezing order issued by the MACC in respect of the bank accounts held by Sunrise Manner.
“The company will undertake all necessary actions, as advised by its legal counsel, and will take all necessary steps to safeguard the interests of the company and its shareholders, and to ensure business continuity,” it added.
Tang was summoned for questioning on Sept 19 and 23. Two accounts under Sunrise Manner, which is involved in property development, were frozen for 90 days from Sept 23 to assist in the ongoing investigation against Tang. One of the accounts is at Maybank Islamic Bhd, while the other is at CIMB Bank Bhd.
Internal audit flags deficiencies at Sunrise Manner
Mayu Global also said that the internal audit conducted by Baker Tilly MH (Penang) Sdn Bhd on Sunrise Manner — covering the period of July 1, 2018 to June 30, 2023 — was focused on funding and disbursement controls. The audit did not include a forensic audit.
The audit found several deficiencies in governance, financial control, and regulatory compliance. In response, the audit has recommended immediate remediation, such as safeguarding the company’s financial integrity, aligning practices with statutory and best practice standards, and enhancing transparency and accountability in funcing and disbursement acvity.
Mayu Global said its management has taken note of the observations and is committed to refining internal policies, enhancing monitoring mechanisms, and strengthening alignment with good corporate governance practices.
Last month, Mayu Global confirmed that the MACC had approached the company and two of its subsidiaries, Progerex Sdn Bhd and SMPC Industries Sdn Bhd, as part of an investigation into alleged illegal smuggling of steel scrap materials. At the time, the company stressed it was not involved in any import or export of scrap, and that all its operations are domestic.
The crackdown, dubbed "Op Metal", was aimed at dismantling scrap metal smuggling syndicates allegedly tied to the bribery of enforcement officials.
Mayu Global is also under separate scrutiny by the police in connection with the long-running MBI Group pyramid scheme. Police had previously frozen group and subsidiary bank accounts holding RM10.67 million and detained executive director Tan Kim Hee in April, although he was later released without charges.
Several assets, including luxury cars and millions of ringgit from company accounts, have since been released under bond or partially unfrozen. The company has insisted the probes have not disrupted its operations or materially affected its finances, though its share price has fallen more than 50% year to date.
Mayu Global’s share price closed up two sen or 20% at 12 sen on Wednesday, giving the company a market capitalisation of RM58 million.