Industronics Berhad has launched a comprehensive review and investigation into historical operations and transactions involving its group company, ECGO International Limited (ECGO), after identifying several matters requiring further examination.
The company said its review of historical records and documentation had uncovered issues relating to ECGO’s past transactions, movement and utilisation of funds, trade receivables, inventory records, supporting commercial documents and corporate governance.
Based on records reviewed so far, ECGO had substantial trade receivables concentrated among a limited number of counterparties, with the total identified exposure exceeding approximately HKD96 million.
Industronics said the underlying transactions, recoverability of the receivables and any potential impairment or recovery action remain subject to verification and further review.
As part of its response, the company has lodged police reports with the Royal Malaysia Police (PDRM) and requested that the matters be investigated by the Commercial Crime Investigation Department.
Industronics said it would continue providing relevant records and supporting documents to the authorities as required.
At the same time, the company is undertaking a comprehensive forensic review covering transaction tracing, fund flows and banking records, verification of receivables and supporting documentation, assessment of recoverability, as well as governance and internal control matters.
The review is intended to establish the facts and assist the board in determining appropriate recovery, legal, regulatory and governance actions, where necessary.
The company is also taking steps to preserve and secure relevant records, systems, accounts and confidential information while the review and investigations remain ongoing.
In light of the matters identified, Industronics said Ms Liu Wing Yee Amy had been directed to cease all management and operational involvement within the group, pending completion of the ongoing investigation and necessary corporate and legal procedures.
All access, authority and rights previously granted to her in relation to the group’s companies, assets, systems, records, accounts and confidential information have been revoked with immediate effect.
The board has also resolved to take the necessary steps to remove Liu from all positions, appointments, authorities, representations and involvement within the Industronics group, subject to the completion of applicable corporate and legal procedures.
Industronics stressed that the review and investigations are still ongoing and that it is currently unable to determine the final financial impact of the matters identified.
This includes the amount that may ultimately be recoverable, as well as whether further impairment, recovery action or other provisions may be required.
The company said the appropriate accounting treatment would be assessed based on the outcome of the review and in accordance with applicable financial reporting requirements.
Industronics also cautioned that the matters remain investigative in nature, and no final conclusion has been reached at this stage that any specific individual has committed a criminal offence or other wrongdoing.
