KUALA LUMPUR (Oct 17): Rohas Tecnic Bhd (KL:ROHAS) said the Malaysian Anti-Corruption Commission (MACC) has issued freezing and seizure orders on the company and its subsidiaries in connection with a 2015 contract involving its 86.8%-owned unit, HG Power Transmission Sdn Bhd (HGPT).
In a bourse filing, the utility infrastructure group said the orders, issued under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, affect certain bank accounts held by Rohas Tecnic, HGPT and Rohas Tecnic's wholly owned subsidiary, Rohas-Euco Industries Sdn Bhd (REI).
“The orders are believed to be part of an MACC investigation concerning a contract entered into by HGPT in 2015, prior to the company’s acquisition of HGPT in 2017,” Rohas Tecnic said, without elaborating further on the contract.
It emphasised that the MACC investigation is isolated and unrelated to the group’s other businesses or contracts.
“The board is treating this matter with the utmost priority, and the company reaffirms its commitment to the highest standards of integrity, transparency and governance across all levels of operations,” it said.
It said it is currently assessing the potential impact of the orders on its overall operations.
The group added it is working closely with its appointed legal counsel and will take all necessary actions to safeguard the interests of the company and its shareholders.
Rohas Tecnic fabricates and builds transmission and telecommunications towers. It is also involved in construction of electrical substations and water treatment plants.
The group acquired HGPT in 2017 for RM91.66 million, paid with RM22.5 million in cash and another 72.8 million Rohas Tecnic shares at 95 sen apiece.
It bought HGPT from an indirect unit of Navis Capital Partners Ltd (50.1%), as well as Kemuncak Agresif (M) Sdn Bhd (49.9%), which was controlled by Baskar Sharma PDR Nathan at the point of acquisition.
At Friday’s closing bell, Rohas Tecnic’s share price was down 1.5 sen or 5.17% at 27.5 sen. This gives the group a market capitalisation of RM127.81 million.