KUALA LUMPUR (Oct 20): Independent investigative accountant Ferrier Hodgson MH Sdn Bhd (FHMH) has found that there were no fraudulent transactions or misconduct by GIIB Holdings Bhd as alleged by former executive director Wong Weng Yew.

The suspicious transactions included the disposal of GIIB Rubber Compound Sdn Bhd's (GRC) machinery to Top Rate Engineering Works; the sale of assets by Big Wheel Green Tyres Sdn Bhd (BWGT) to Looe Chee Keong amounting to RM2.68 million and the settlement of disputes owing from Looe of RM5 million respectively.

They also included Goodway Marketing Sdn Bhd's (GMSB) agreements and transactions with Project A Automotive Sdn Bhd (PAA), which included renovation costs of GMSB amounting to RM62,000 and rental deposits and utilities amounting to RM16,000, and advanced payments by Wong Ping Kiong to the GIIB from March 17, 2020.

According to GIIB, FHMH's investigation found that there was insufficient evidence to support the allegation that there was collusion to defraud GRC. The divestment was properly accounted for and disclosed in GRC's records and occurred before Wong joined the company's board in February 2021.

"All the alleged amounts arising from the disposal of assets of BGWT to Looe and settlement of amount owing from Looe arising from the related agreements were properly accounted for," according to GIIB's filing.

The investigative accountant also found that alleged fraudulent transactions with PAA and the unsubstantiated payments were in fact recorded on GMSB's balance sheet and appeared to have been accounted for correctly.

The finding also stated that alleged salary advances or overpayments to the Ping Kiong were not salary overpayments, but rather salary deferrals. There was, however, an overpayment of advances during the rights shares set off arrangements that could be set off against salary deferrals.

Hence, there is no ground to take any further action against the affected persons. GIIB's audit and risk management committee will review and make recommendations to improve the internal processes of the group.

FHMH was appointed by GIIB in July to undertake a forensic investigation into four suspicious transactions highlighted by Weng Yew.

Weng Yew has been suspended from his executive directorship since March 28. He was redesignated as non-independent non-executive director on May 27.

Weng Yew has also filed a suit against GIIB, as well as three members of the board, namely executive chairman and chief executive officer Tai Boon Wee, his sons Tai Qiyao and Tai Qisheng, as well as Alison Wong Ping Kiong, who is the ED of GRC. Weng Yew is also seeking a declaration that his suspension and termination as executive director taken by GIIB are null and void, among others.

Shares of GIIB closed unchanged at seven sen on Thursday (Oct 20), with a market capitalisation of RM41.39 million.