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- Mayu Global assured that the freezing of the accounts are not expected to have a material financial or operational impact on the group, based on an assessment of its financial position, cash flow projections for the next 12 months, and the availability of hire-purchase facilities.
KUALA LUMPUR (Sept 30): Steel products maker Mayu Global Bhd (KL:MAYU) said a director at its 80%-owned subsidiary, Sunrise Manner Sdn Bhd, has been summoned by the Malaysian Anti-Corruption Commission (MACC) to assist in an ongoing investigation. The bank accounts of this subsidiary have also been frozen in connection with the probe.
The director, Tang Tiam Hok, was summoned on both Sept 19 and Sept 23. No charges have been filed against him at this juncture, Mayu Global said in a bourse filing Monday.
Meanwhile, two accounts under Sunrise Manner, which is involved in property development, will be frozen for 90 days from Sept 23 to assist in the ongoing investigation against Tang. One of the accounts is at Maybank Islamic Bhd, while the other is at CIMB Bank Bhd.
The freeze was executed under a section of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, which grants enforcement agencies the authority to freeze assets when investigating a suspected offence under this law.
Mayu Global assured that the freezing of the accounts are not expected to have a material financial or operational impact on the group, based on an assessment of its financial position, cash flow projections for the next 12 months, and the availability of hire-purchase facilities.
Op Metal
Last month, Mayu Global confirmed that the MACC had approached the group and two of its subsidiaries, Progerex Sdn Bhd and SMPC Industries Sdn Bhd, as part of an investigation into alleged illegal smuggling of steel scrap materials. At the time, the company stressed it was not involved in any import or export of scrap, and that all its operations are domestic.
The crackdown, dubbed "Op Metal", is aimed at dismantling scrap metal smuggling syndicates allegedly tied to the bribery of enforcement officials.
Authorities estimate the activities have cost the government about RM950 million in lost tax revenue. NationGate Holdings Bhd’s (KL:NATGATE) premises were also raided in July as part of the same probe.
The MBI link
Mayu Global is also under separate scrutiny by the Royal Malaysian Police (PDRM) in connection with the long-running MBI Group pyramid scheme. Police had previously frozen group and subsidiary bank accounts holding RM10.67 million and detained executive director Tan Kim Hee in April, although he was later released without charge.
Several assets, including luxury cars and millions of ringgit from company accounts, have since been released under bond or partially unfrozen. The group has insisted the probes have not disrupted its operations or materially affected its finances, though its share price has fallen more than 50% year to date.
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