KUALA LUMPUR: Scanwolf Bhd has reinstated the executive powers of executive director Datuk Tan Sin Keat and financial controller Ng Chee Wai after more than seven months.
The plastic extrusion maker and property developer told Bursa Malaysia on Tuesday that this was in respect of the investigative review conducted by audit firm PKF Covenant Sdn Bhd.
Tan and Ng are also executive director and non-executive director, respectively, of Scanwolf’s unit Scanwolf Plastic Industries Sdn Bhd (SPI).
To recap, in April last year Scanwolf appointed PKF Covenant to conduct an investigative review on the group based on the findings of insufficient measures, severe discrepancies and possible irregularities in the implementation of certain development projects.
In June Scanwolf set up a four-member investigative committee comprising Scanwolf board members and a PKF representative. The company also announced on the same day that it had suspended Tan’s and Ng’s executive powers pending a full investigation into discrepancies in supporting documents.
Within weeks, the investigative committee lost three of its four members. One person resigned as director the day after the committee was formed (reason given was “management disagreement and do not want to be drawn in the board tussle”) while the other two, including group managing director Datuk Chng Kong San, were removed as directors at an EGM held on June 17. (The director who first resigned, Ong Sing Guan, has since been reappointed to the board.)
On July 13, the investigative committee was formed again with Ong as its chairman plus three other Scanwolf directors and the PKF representative.
On Dec 23 the Scanwolf board, which has received PKF’s report, announced that it had taken cognisance of its legal adviser’s opinion that there were no financial losses incurred by the group, and that there was no evidence to show wrongdoings either criminal nor civil culpability perpetrated by any individual.
“Following this finding, the board considered this matter closed and resolved to move on in charting a new course for a better and successful future of the group,” it told the exchange, adding that “the investigative committee (was) dissolved with immediate effect.”
It is not known why there was a three-week gap before Scanwolf announced the reinstatement of Tan’s and Ng’s executive powers.
Since the duo’s suspension, Scanwolf share price has plunged by more than half. In the last five months the counter has hovered at about the 33 sen level.
Scanwolf closed at 34 sen on Tuesday, up 1 sen.
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