HHRG unit reports ex-CEO to police over alleged misconduct, unauthorised transactions

• The police report follows Fong's sacking in May, after investigations by the company against him on allegations of misconduct. 

KUALA LUMPUR (July 1): HHRG Bhd (KL:HHRG)’s unit has lodged a police report against the group’s former CEO Fong Chee Khuen following the discovery of alleged financial misconduct and unauthorised money-lending transactions dating back to March 2024.

The police report, lodged on June 26 at 6.46pm, identified Fong as a former director of HHRG Capital Sdn Bhd, the group's subsidiary engaged in licensed money lending.

The police report follows Fong's sacking in May, after investigations by the company against him on allegations of misconduct, as well as implied terms and conditions of his appointment.

Fong was appointed as CEO on Oct 3, 2022.

HHRG, which deals with coconut and palm oil fibres for biomass use, said in its filing that the alleged irregularities are not expected to have any material impact on either the group’s or the subsidiary’s operations.

It added that it will make the necessary announcements on further material development of the above matter.

HHRG—formerly known as Heng Huat Resources Group Bhd—in recent months caught the spotlight amid a dispute between its 16%-shareholder CFamillie Holdings Sdn Bhd (linked to the Ch’ng family) and the company’s board of directors, where CFamillie has no representation.

The dispute is mainly over MG Furniture Sdn Bhd, which HHRG owns 51% of through a share sale agreement with CFamillie in 2022.

Amid the dispute, HHRG secured court approval to inspect MG Furniture's records, and in the process also secured a court order to stop MG Furniture’s directors linked to CFamilie from entering the company premises, except for official duties with prior notice.  

(Read also: HHRG issues show cause letter to CEO, extends suspension)

In March, CFamilie through custodian Digital Trustee Bhd unsuccessfully tried to convene an extraordinary general meeting to remove the entire HHRG board of directors. The board in turn went to court to block Cfamillie and Digital Trustee from organising the meeting. 

In between, one of HHRG's independent directors Ju Siew Lee resigned on April 4 to pursue other interests.

Another substantial shareholder of HHRG is Tai Chin Hwang, who owns 1.53% direct stake and 7.56% indirect stake via Batu Kawi Capital Sdn Bhd.

HHRG’s shares closed unchanged at 10 sen, giving the group a market capitalisation of RM101.83 million. The counter is down 16% this year.

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