KUALA LUMPUR (Nov 25): Candy manufacturer Khee San Bhd has lodged a police report against its former chairman Datuk Seri Liew Yew Chung, who is also the former major shareholder of London Biscuits Bhd, as well as other undisclosed concerted parties, for alleged fraudulent schemes including forgery, misappropriation and embezzlement of the company's funds for their personal use.
Khee San was a 20% associate company of London Biscuits until Dec 20, 2019.
On top of that, the board had also initiated legal suits against bankers for negligence but believed there had been collusion or conspiracy.
In a filing with Bursa Malaysia today, Khee San said the police report was lodged on Monday at Bukit Aman for possible offences under Penal Codes, such as criminal breach of trust, cheating, and forgery.
The company had previously filed a writ of summon and statement of claim against Liew on Sept 28 from the discovery of a fraudulent scheme allegedly perpetrated primarily by the former chairman during the period from Oct 1, 2018 to July 4, 2019.
"The board contends that due to the actions of Liew, the total loss to Khee San stands at RM75 million," Khee San said.
On Sept 25, Khee San said in an exchange filing that initial findings by forensic auditors at BDO Governance Advisory Sdn Bhd reveal what appear likely to be fraudulent activities.
These include fictitious sales invoices of RM39.45 million as well as purchase invoices amounting to RM4.47 million that are not supported by stock card movements used as a basis for the drawdown of credit facilities.
All applications for the credit facilities were approved by Liew as the company's then chairman. Liew was also chief executive officer and substantial shareholder of London Biscuits, which is now in liquidation.