KUALA LUMPUR (Sept 30): Two former employees of an investment bank pleaded not guilty at the Sessions Court on Wednesday to charges of deceiving the bank in connection with the issuance of a standby letter of credit (SBLC) valued at US$16 million (RM65 million) three years ago.

Chia Kian Lim, 40, and Lai Heow Gran, 52, are jointly accused of deceiving the bank by making representations that the SBLC had been approved by the relevant authority or the bank's chief executive officer.

They allegedly approved the SBLC transaction through their respective roles as checker and maker in the SWIFT system, inducing the bank to proceed with and issue the SBLC, when such approval had in fact never been given. The offence was allegedly committed at the bank on Nov 9, 2023.

They were charged under Section 417 of the Penal Code, read together with Section 34 of the same Code, which provides for a maximum prison sentence of five years or a fine or both, upon conviction.

Deputy public prosecutor Mohamad Fadhly Mohd Zamry offered bail of RM50,000 with one surety for each accused, taking into account the substantial amount involved, as well as additional conditions that they not disturb witnesses or access any company computer.

Chia’s lawyer G Maniggandan sought a reduction in bail to RM10,000, on the grounds that his client is the sole breadwinner of his family and had cooperated well with the authorities during the investigation.

Meanwhile, lawyer Manjit Singh, representing Lai, also sought lower bail, on the grounds that the accused is unemployed and has two children, aged seven and nine, as well as a wife.

Judge Azrul Darus allowed bail of RM20,000 with one surety for each accused and fixed Nov 16 for case mention.

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