Packaging firm Versatile axes MD and CFO over missing RM2.3mil

PETALING JAYA: Packaging firm Versatile Creative Bhd has sacked managing director (MD) Datuk Wong Kong Choong @ Leong Kong Choong and chief financial officer (CFO) Tan Quok Eow over a missing sum of RM2.3mil.

The company said in a filing with Bursa Malaysia on Tuesday that the duo were dismissed with immediate effect after they had failed to answer allegations made against them in show-cause letters dated Aug 13.

Versatile Creative’s board of directors had issued and served the show-cause letters after a forensic audit confirmed there were irregularities involving payments amounting to RM2.3mil on Aug 13. They had been given seven days to respond to the show-cause letters.

Trading in Versatile Creative shares have been suspended since Aug 8 after the company failed to submit its annual report for the financial year ended March 31 on time.

In separate announcements, Versatile Creative said it had appointed former commissioner of police Datuk Seri Wira Ayub Yaakob, 64, as an independent non-executive director.

It has also appointed Khat Chee How, 33, and Lim Siew Yeng, 27, as executive directors.

Siew Yeng’s father, Lim Chou Bu, is a major shareholder in Versatile Creative through his interest in NSK Trading Sdn Bhd. NSK is the single largest shareholder in the company with a 22.17% stake.

On July 3, Versatile Creative first announced that it had discovered irregularities in payment and had appointed Crowe Malaysia to conduct a forensic audit. Crowe Malaysia completed the report on Aug 8 and revealed that there were irregularities in payments amounting to RM2.3mil, which had been approved by the company’s MD and CFO.

The board also suspended the MD and his CFO to facilitate the investigation.

“The report found that the MD and CFO could not account for the RM2.3mil and failed to provide evi- dence as to whom the RM2.3mil was paid to,” it said.

The stock, which has a market capitalisation of RM54.21mil, closed Tuesday unchanged at 42 sen. On a one-year basis, the stock is down 43.24%.

Besides NSK Trading, the other major shareholders include PMB Investment Bhd and Rica Holdings (M) Sdn Bhd, with a 5.6% and 4.32% stake, respectively.

For the fourth quarter ended March 31, the company made a net loss of RM6.72mil.