MACC unfreezes accounts of troubled lingerie maker Caely, now known as Classita

MACC unfreezes accounts of troubled lingerie maker Caely, now known as Classita

KUALA LUMPUR (Dec 7): After nearly eight months, the Malaysian Anti Corruption Commission (MACC) has unfrozen the bank accounts of troubled lingerie maker Classita Holdings Bhd (formerly known as Caely Holdings Bhd) and its subsidiaries.

This came after the MACC concluded its investigation without bringing any charges against the company, said Classita in a bourse filing on Wednesday (Dec 7).

“The board of directors of Classita wishes to announce that the MACC had completed their investigation without any charge being made against the company. Besides, MACC had also unfrozen the operational accounts of the company and its subsidiaries,” it said.

In April, the MACC had frozen all operational bank accounts of Caely and its subsidiaries in connection with several suspicious transactions.

The company was in the spotlight due to the misappropriation of RM30.55 million by its wholly-owned subsidiary Caely (M) Sdn Bhd (CMSB).

In October, the company’s new board of directors had lodged a police report against 12 of its former directors, including former executive chairman Datuk Wira Ng Chun Hau, founder and former executive director Datin Fong Nyok Yoon, and Fong’s husband Datuk Chuah Chin Lai (who was the group’s managing director from October 2002 to April 2021).

The others were Siow Hock Lee, Ooi Say Teik, Hem Kan @ Chan Hong Kee, Ng Boon Kang, Tan Loon Cheang, Lim Chee Pang, Lim Say Leong, Beh Hong Shien and Gok Ching Hee.

The board requested the police to investigate any possible element of crime and misappropriation of funds that had caused losses to Classita and also the concealment of malpractice by members of its previous board.

Classita’s board now comprises Leong Seng Wui, Datuk Kang Chez Chiang, Ng Keok Chai and Krishnan Dorairaju, while ts former executive director Datuk Mike Loh Ming Choon, Datuk Seri Sin Hock Min, former executive vice-chairman Datin Seri Jessie Wong Siaw Puie, Koo Chen Yeng, Datuk Mohamad Hanafiah Zakaria, Ng Mei Choo and Datuk Koh Mui Tee have been removed.

For its first financial quarter ended Sept 30, 2022, Classita registered a net loss of RM568,000 — its third consecutive quarterly loss — versus a net profit of RM831,000 a year earlier, amid lower manufacturing sales. Revenue fell 14.5% to RM13.91 million from RM16.28 million, due to lower production arising from labour shortage.

Classita shares closed at 30 sen on Wednesday, valuing the company at RM101.71 million.

http://www.theedgemarkets.com/article/after-nearly-eight-months-macc-unfreezes-troubled-lingerie-maker-classitas-bank-accounts