KUALA LUMPUR (March 10): The Royal Malaysian Police, under investigations related to the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA), have frozen bank accounts belonging to MMAG Holdings Bhd (KL:MMAG) and NexG Bina Bhd (KL:NEXGBINA).
NexG Bhd (KL:NEXG) is the substantial shareholder of the two companies. It holds a 9.525% stake in MMAG and a 32.61% stake in NexG Bina.
In separate filings with Bursa Malaysia on Tuesday, both companies announced that their bank accounts had been frozen by the police due to AMLA-related investigations.
The announcements came after NexG Bhd’s (KL:NEXG) executive chairman and CEO Datuk Abu Hanifah Noordin revealed the freezing of the company’s bank accounts in a statement.
Both companies said they had not received any formal order on the freeze and only became aware of the situation after they were unable to make payments for certain operating expenses.
NexG Bina, formerly known as Classita Holdings Bhd, said 16 bank accounts belonging to the company and its subsidiaries maintained with RHB Bank Bhd have been frozen since mid-November 2025.
Its board was informed of the freeze at the last board meeting in February 2026, but there was no operational impact on its operations at that juncture.
NexG Bina warned that the company might not be able to proceed with ongoing development projects and might be exposed to potential lawsuits and claims for breach of contract if the company does not have sufficient funds to make payment and fulfil its ongoing commitments.
As a result, NexG Bina said the company is making its best efforts to ensure the current collections from its manufacturing division is able to pay its fixed expenditures and manufacturing overheads.
NexG Bina is currently seeking legal advice on next courses of action, noting that its board is not aware of any wrongdoing and has been seeking clarification from the authorities on the issue.
NexG Bina said it has submitted bank statements of all the affected accounts to the relevant authorities and has not been informed of any specific findings or alleged non-compliance or illegal money laundering activities involving the company.
In the filing, NexG Bina noted that it has submitted multiple written appeals to the relevant authorities requesting the unfreezing of the accounts or a structured conditional operational release of the affected bank accounts, but has yet to receive a formal response.
NexG Bina said it strongly believes that “it complies and adheres to all applicable regulatory and governance standards, including Bursa Malaysia Listing Requirements, financial reporting obligations and statutory compliance frameworks”.
Over at MMAG, whose share price plunged from 58 sen to six sen in last October, it said several of its bank accounts had been gradually frozen since October 2025 and remain frozen to date.
MMAG added that it has been engaging with the relevant authorities to seek clarification and resolve matters relating to the freezing of the affected accounts.
At this juncture, MMAG said in its bourse filing that the board is unable to ascertain the financial and operational impact from the freezing of the affected accounts on the group.
“Nevertheless, the group has taken the necessary measures, including utilising its other available bank accounts, to ensure that its day-to-day operations continue without disruption,” said MMAG.
Businessman Datuk Seri Farhash Walfa Salvador made headlines after emerging as the largest shareholder in MMAG with a 20% stake in March 2025. He was later appointed the group's chairman.
This coincided with the emergence of NexG Bhd (KL:NEXG), formerly known as Datasonic Group Bhd, as a substantial shareholder with a 9.53% stake.
At around the same time, Velocity Capital Partner Bhd (KL:VELOCITY) also acquired a 6.46% stake in MMAG.
Velocity Capital is the company in which MACC commisioner Tan Sri Azam baki once held a stake, a move that has since triggered a probe into if he breached any public service rule.
Both Farhash and Velocity Capital exited MMAG in January this year after they sold their stakes at a loss. Farhash’s stake sale resulted in an estimated loss of over RM97 million, while Velocity Capital is estimated to have lost over RM50 million.
Farhash resigned from his position as the group's non-independent and non-executive chairman on Jan 2 “to pursue personal commitments”.
Shares in MMAG closed 0.5 sen higher at three sen on Tuesday, giving the group a market capitalisation of RM70 million. Over the past one year, the stock has slid 94% from 50 sen.
NexG Bina dropped 0.5 sen to 2.5 sen, valuing the company at RM30.82 million. It has slumped 58.3% from six sen a year ago.
Meanwhile, NexG rose 0.5 sen to close at 28 sen, valuing the company at RM1.02 billion. It has increased 7.7% over the last 12 months.
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