Magna Prima files report against ex-CEO

KUALA LUMPUR: Magna Prima Bhd has lodged a police report against its former CEO Lim Ching Choy for alleged criminal breach of trust.

The property developer said on May 10 Lim was alleged to have made fraudulent personal claims during his tenure with the company between Nov 1, 2006 and May 14, 2009.

“The allegations stem from substantial claims made by him for non-family members whom he represented as his wife and son,” the company said in a statement.

Based on an extract of the police report lodged by Magna Prima on May 10, Lim claimed benefits amounting to RM22,000 allegedly for his non-family members.

The report said due to the misrepresentation by Lee, the company had to incur the unnecessary expenditure that has steered the property firm into losses.

The company said the findings followed an internal investigation and a check with the National Registration Department.

Lim was also the former managing director of Ho Hup Construction Co Bhd.

However, Lim was ousted from the board of Ho Hup after shareholders voted to remove eight directors, including Lim and deputy chairman Datuk Vincent Lye, at an EGM called by major shareholder Datuk Low Tuck Choy.

The row between Low and Lye started when the latter bought into the construction outfit in 2008. The disagreement between Low and the ousted directors include the former board’s proposal to restructure the company.

Ho Hup, a PN17 status company, posted a net loss of RM34.88 million for the financial year ended Dec 31, 2009.

This article appeared in The Edge Financial Daily, May 11, 2010.

Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.