Published: Friday August 21, 2009 MYT 1:41:00 PM
Updated: Friday August 21, 2009 MYT 3:34:32 PM
Two claim trial to misuse of insurance funds (Update)
By M. MAGESWARI
KUALA LUMPUR: A former director and a former chief executive officer pleaded not guilty to 27 and 53 charges respectively in relation to the misuse of insurance funds involving over RM2mil.
The two became the first people to be charged with such offences under the Insurance Act 1996.
Former director Bernard Wong Shoon Tet, 49, of Bukit Damansara, and ex-CEO Edwin Wong Lee Tuck, 46, of Damansara Heights, who were then attached to PanGlobal Insurance Berhad, were calm upon hearing their charges on Friday.
They were said to have applied between RM18,000 and RM126,000 on each occasion from the assets of its insurance fund for expenses not attributable to that fund.
They were alleged to have committed the offences at the company’s premises at Menara PanGlobal in Lorong P. Ramlee here between July 16 2003 and Jan 18, 2006.
If convicted, each could be jailed up to five years or fined RM5mil or both under Section 41(2) of the same Act.
Prosecuting officer Stanley Augustin applied for the court to set bail for each accused at RM1mil in one surety in view of severity of the offences, the high penalty and the amount involved.
Augustin said the court had to consider that Bernard faced 27 charges involving RM2.2mil while Edwin faced 53 charges involving RM2.7mil.
In asking the court to impose additional bail conditions, Augustin said the offences were non-bailable.
Pleading for lower bail, lawyer L.K. Mak, acted for Bernard, asked the court to set his bail at RM10,000 saying that his client had co-operated with the authorities throughout their investigation over the past two years.
Bernard’s co-counsel Rajinder Singh, said his client intended to clear his name over the insurance claim matter.
In applying for lower bail, lawyer Simon Sabapathy, who represented Edwin, said his client had retired from the insurance business and that his current hobby was in computer board games where his income was only RM6,000 per month.
He asked the court to consider that Edwin has a wife and a 15-year-old son to take care of.
Sabapathy said Edwin had gone to Bank Negara as requested on various occasions to give interviews over the case.
His co-counsel, Alan Wong, said Edwin had resigned two years ago and that the business had already been sold to Tokio Marine Insurans (M) Bhd.
(PanGlobal Insurance was incorporated on May 6, 1970. Its licence was revoked by Bank Negara on April 13 this year and later the general insurance company was sold to Tokio Marine.)
Sessions Court judge S.M. Komathy Suppiah granted each accused bail of RM300,000 and ordered them to deposit a security of RM100,000.
Komathy allowed a joint-trial application after no objections were raised by the defence team and ordered the accused to surrender their passports.
The judge set Sept 28 for mention.
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