Kuala Lumpur, 21 August 2009
SC appeals against RM350,000 fine imposed by Sessions Court in Megan Media case
The Securities Commission Malaysia (SC) today filed an appeal against the Kuala Lumpur Sessions Court’s sentence on Kok Hen Sen @ Kok Liew Sen for furnishing false information on the revenue of Megan Media Holdings Berhad (MMHB). The SC views seriously all offences involving breaches of securities laws, and will continue to seek heavier penalties to serve as a deterrent in order to maintain investor confidence in the integrity of the Malaysian capital market.
Kok, aged 63, pleaded guilty in the Sessions Court for abetting the public-listed MMHB in submitting false revenue figures of over RM1 billion ringgit in its Financial Statement for the year ended 30 April 2006. He also admitted to three other outstanding charges of falsifying MMHB’s revenue figures for the first three quarterly financial statements of 2007. Sessions Court Judge Encik Asmadi Hussin had on 18 August 2009 sentenced Kenneth Kok to a fine of RM350,000 to be paid the next day in default of a year’s imprisonment.
At the material time, Kok was the personal assistant to the Executive Chairman of MMHB. The Executive Chairman, Dato Mohd Adam Che Harun was also charged under the same section as Kok, for furnishing false information on the revenue figure for MMHB’s third quarter 2007 financial figure.
This fraud made a significant impact on the market price of the company as the share price dropped by 85% over a period of 3 months after the news of the false statements became known to the public.
The SC had earlier urged the Sessions Court to mete out a deterrent sentence, taking into account the fact that Kok had played a key role in the creation of fictitious invoices to support the false revenue figures. Furthermore, several financial institutions had been deceived into providing to the company trade facilities which were then used to resemble payments for the sales that did not take place.
SECURITIES COMMISSION MALAYSIA