Xin Synergy Group Bhd’s (XSGB) wholly owned subsidiary Total IPCO Sdn Bhd has filed a lawsuit against three former directors and 15 other defendants, seeking to recover approximately RM37.94 million in losses and damages linked to moneylending activities undertaken during the former directors’ tenure.
The company said Total IPCO filed a writ of summons and statement of claim dated Sept 9, 2026, at the High Court of Pulau Pinang.
The suit names former directors Khoo Yik Chou, Chong Wei Liang and Chong Wei Chuan as the first, second and third defendants respectively, alongside 15 other defendants.
The legal action follows an independent review commissioned by the company into 28 moneylending activities undertaken during the tenure of the three former directors, which Xin Synergy said had resulted in Total IPCO recording significant impairment losses.
According to the company, the independent review identified instances where certain loans had allegedly been approved and/or disbursed without compliance with Total IPCO’s standard operating procedures and applicable statutory requirements.
Following the review findings and after obtaining legal advice, Total IPCO commenced the suit to protect the interests of the subsidiary, Xin Synergy and its shareholders.
