The Securities Commission (SC) today charged two former directors of Transmile Group Berhad (TGB) for knowingly authorising the furnishing of misleading statement to Bursa Malaysia Securities Berhad in relation to TGB’s “Quarterly Report on Unaudited Consolidated Results for the Financial Year Ended 31 Disember 2006″. The misleading statement was in respect of TGB’s reported revenue of RM989,191,000.
The two directors are Chin Keem Feung, former Independent Non-Executive Director of TGB, and Shukri bin Sheikh Abdul Tawab, former Independent Non-Executive Director of TGB. Both Chin Keem Feung and Shukri bin Sheikh Abdul Tawab were also the members of TGB’s audit committee at the time when the alleged offence was committed. They are charged under section 122B(b)(bb) of the Securities Industry Act 1983 (SIA).
The SC had earlier in July 2007 offered compounds of RM500,000 each to Chin Keem Feung and Shukri bin Sheikh Abdul Tawab for the offence. The criminal charges against the two follow their failure to pay the compound within the permitted time.
The charges against Chin Keem Feung and Shukri bin Sheikh Abdul Tawab alleged that both of them knew the statement submitted was misleading when they authorised the same for submission to Bursa Malaysia Securities Berhad.
Upon conviction, the accused persons are liable under section 122B of the SIA 1983 to a fine not exceeding RM3 million or to imprisonment for a term not exceeding 10 years or to both.
Both Chin Keem Feung and Shukri bin Sheikh Abdul Tawab were released on bail of RM100,000 with their international passport to be surrendered to the Court as a condition to the bail.
The case will be jointly heard on 2-4 June 2008.
The three other Transmile directors that were charged by the SC on 12 July 2007 are Gan Boon Aun, former Chief Executive Officer of TGB; Lo Chok Ping, former Chief Financial Officer of TGB; and Khiudin bin Mohd, TGB’s Executive Director. These three individuals were charged under section 86(b) read together with section 122C(c) of the SIA.