PRG Holdings Berhad announced that it has appointed PKF Covenant Equity Consulting Sdn Bhd to undertake an independent review into several financial transactions, agreements and dealings involving the group, with fieldwork expected to begin once the engagement is confirmed and required information is provided.
The independent review it added aims to provide greater clarity and transparency over matters relating to the project and associated transactions, including the proposed debt settlement agreement. The scope of review includes an examination of financial transactions, agreements, contracts, board meeting minutes and related corporate documents.
PKF will also review all dealings and evaluate the relationship between PCI and PDM, including whether transactions were conducted on an arm’s length basis, whether PDM received any economic benefits, and whether PCI and PRG had assumed funding obligations, credit exposure or impairment risks linked to the project.
The review will further assess the relationship between PRG and PDM, including whether minority shareholders may have been exposed to financial burdens, funding costs, credit risks, impairment losses or recovery risks arising from the project.
Among other areas, PKF will examine how PCI financed and supported the project, including whether internally generated funds, operating cash flows, banking facilities, proceeds from other contracts or other group resources were utilised.
The independent consultant will also assess the level of governance and transparency surrounding the matters under review.
PRG said PKF is expected to issue a draft report within 10 weeks and a final report within 12 weeks from the receipt of all necessary information.
This comes as the group said multiple special board meetings were convened, with the Board carrying out an in-depth verification process and obtaining independent legal advice to assess the issues raised.
The Board said it was not aware of ownership developments involving Premier De Muara Sdn Bhd (PDM) at the time the proposed settlement was considered.
