Two former directors of delisted Axis jailed

> Both plead guilty to furnishing false info on firm’s revenue to regulator

PETALING JAYA: The Kuala Lumpur sessions court yesterday convicted and jailed two former executive directors of Axis Incorporation Bhd for furnishing false statements to stock exchange regulator Bursa Malaysia.

The Securities Commission said in a statement that Lee Han Boon and Saipuddin Lim Abdullah both pleaded guilty to furnishing false information to the stock exchange in relation to Axis’ revenue of RM91.13 million. Of that amount, RM51.5 million was false for the fourth quarter ended March 31, 2008.

Axis, a garment manufacturing company, was delisted from Bursa Malaysia on Nov 30, 2010.

In addition, Lee and Saipuddin faced four other counts of the same offence in relation to Axis’ consolidated income statement for all four quarters in its financial year ended 2007. Sessions court judge Azman Ahmad took into consideration these factors in sentencing Lee and Saipuddin.

Lee, 36, was sentenced to seven months’ imprisonment and fined RM200,000, while Saipuddin, 58, was sentenced to 12 months’ imprisonment. Both were former substantial shareholders and executive directors of Axis.

The trial against Lee and Saipuddin started in 2015. It will continue against two other individuals, Koh Tee Jin and Lee Koon Huat, who were charged and jointly tried with Lee and Saipuddin for the same offences.

The sentences were meted out by the sessions court following Lee and Saipuddin’s applications for a plea bargain under the provision of Section 172C of the Criminal Procedure Code.