‘Law con­sti­tu­tional in Trans­mile false fi­nan­cial state­ment case’

New Straits Times - - Business -

KUALA LUMPUR: The Fed­eral Court ruled yes­ter­day that Sec­tion 122(1) of the Se­cu­ri­ties In­dus­try Act 1983 (SIA) is con­sti­tu­tional and did not vi­o­late the Fed­eral Con­sti­tu­tion.

In June 2011, for­mer Trans­mile Group Bhd chief ex­ec­u­tive officer Gan Boon Aun made an ap­pli­ca­tion to the High Court to re­fer a con­sti­tu­tional ques­tion on the va­lid­ity of sec­tion 122(1) of the SIA, ar­gu­ing that the pro­vi­sion was in­con­sis­tent with Ar­ti­cle 5(1) of the Fed­eral Con­sti­tu­tion.

Last year, the High Court re­ferred the con­sti­tu­tional ques­tions to the Fed­eral Court for de­ter­mi­na­tion.

Fed­eral Court Jus­tice Tan Sri Jef­frey Tan Kok Wha, in de­liv­er­ing the apex court’s land­mark de­ci­sion, held the pro­vi­sion to be valid and or­dered the mat­ter to be re­mit­ted to the Ses­sions Court for con­tin­u­a­tion of the trial.

Gan was charged by the Se­cu­ri­ties Com­mis­sion Malaysia (SC) in 2007 for abet­ting Trans­mile in mak­ing false fi­nan­cial state­ment re­lat­ing to the com­pany’s rev­enue that was likely to in­duce the pur­chase of its shares.

He was charged in the al­ter­na­tive with hav­ing fur­nished a mis­lead­ing state­ment to Bursa Malaysia Se­cu­ri­ties Bhd in the same fi­nan­cial state­ment.

Gan was called to en­ter his de­fence on the al­ter­na­tive charge af­ter the close of the pros­e­cu­tion case.

If con­victed, Gan could face a min­i­mum fine of RM1 mil­lion or im­pris­on­ment of up to 10 years, or both.

Trans­mile Group pre­vi­ous in­vestors in­cluded ty­coon Robert Kuok and Pos Malaysia Bhd.

For­mer trans­port min­is­ter Tun Dr Ling Liong Sik was also pre­vi­ously a Trans­mile chair­man.

The com­pany ap­peared in the SC’s radar af­ter it was re­vealed that its im­pres­sive re­sults were due to mas­sive ac­count­ing ir­reg­u­lar­i­ties.

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