Kuala Lumpur, 15 February 2007
SC raps Nasioncom and directs company to re-issue 2005 financial statements – Ensures investors have true financial figures
The Securities Commission (SC) today publicly reprimanded Nasioncom Holdings Berhad (NHB) and directed the company to rectify and re-issue its financial statements for the financial year ended 31 December 2005 within a month.
NHB had submitted false information to the SC with respect to revenue on sales that were not transacted, in its 2005 financial statements. In doing so, NHB had breached section 122B(a)(bb) of the Securities Industry Act 1983.
The SC’s investigation revealed that NHB’s group revenue of RM194,984,186 as reflected in its 2005 financial statements contained a total of RM143,109,727 sales that were not transacted. These sales were recorded in the financial statements of two NHB subsidiaries, namely Nasioncom Sdn Bhd and Express Top-up Sdn Bhd.
NHB’s re-issuance of its 2005 financial statements must be accompanied by an announcement to Bursa Malaysia Berhad on the rectifications done as well as the reasons and effects.
This rectification and re-issuance of NHB’s 2005 financial statements would ensure that investors have complete and accurate information to make informed investment decisions.
The SC views NHB’s issuance of financial statements containing false information as a very serious breach. Further action could, therefore, be taken against the person(s) who caused the issuance of the 2005 financial statements which contained the false transactions. The SC’s investigations in this respect are on-going.
All other listed corporations and their directors are also reminded of their obligation to provide accurate financial information to the investing public. The SC reiterated that it will take action against listed corporations and their officers for failure to comply with any provision of the securities laws.