PUTRAJAYA (May 6): The Malaysian Anti-Corruption Commission (MACC) said on Wednesday that the frozen bank accounts of Padini Holdings Bhd (KL:PADINI) and Cropmate Bhd (KL:CRPMATE) will remain restricted for the time being as part of ongoing investigations.
Outgoing MACC chief commissioner Tan Sri Azam Baki told reporters that the commission had received requests to unfreeze the accounts, but investigating officers have recommended that they remain frozen under anti-money laundering laws.
“The freezing of assets is still ongoing, and indeed, the related parties have requested that it be released. However, the investigating officers are still saying that the assets need to remain frozen,” he said.
The accounts were frozen under Section 44(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, also known as AMLA, late last month. This provision empowers the MACC to freeze assets, including bank accounts, if it suspects they are involved in, or are proceeds of, unlawful activities.
Fashion retailer Padini, which previously said its accounts were frozen as part of the MACC’s probe into "external counterparties" rather than its own staff or officers, announced on May 1 that some of its frozen accounts had been partially released.
The company also noted it was unaware of any wrongdoing on its part and viewed the account freeze as a standard step in the investigation. Nevertheless, it commenced an internal review to assess the situation, and "to ensure that its policies, procedures, and controls remain robust and effective".
Similarly, Cropmate, a recently listed fertiliser manufacturer, announced on May 4 that it was informed by its solicitors that the MACC had partially released some of its frozen bank accounts. The company has since submitted further representations to seek a full unfreezing. Cropmate continues to maintain that it is unaware of any wrongdoing, and that it has access to alternative banking facilities to ensure uninterrupted business operations.
As of the noon break on Wednesday, shares in Padini were down one sen or 0.67% at RM1.48, valuing the company at RM1.46 billion. Cropmate shares shed half a sen or 2.5% to trade at 19.5 sen, valuing the company at RM143.91 million.