KUALA LUMPUR (April 24): The Malaysian Anti-Corruption Commission (MACC) has frozen certain bank accounts belonging to Padini Holdings Bhd (KL:PADINI) amid an ongoing investigation linked to money laundering.
The garment retailer said the accounts, held by the group and its subsidiaries, were frozen pursuant to Section 44(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
In its Bursa Malaysia filing on Friday, Padini noted that the affected accounts are not actively used for its day-to-day operations, and that the group continues to have access to other banking facilities to support its business activities.
“The freezing of these accounts is not expected to have a material financial or operational impact on the group,” it said, noting that it is taking the necessary steps to engage with the relevant authorities and will extend its full cooperation in the investigation.
Padini added that the board will make further announcements as and when there are any material developments.
Its share price closed down two sen or 1.27% to RM1.55 on Friday, giving it a market capitalisation of RM1.53 billion.