KFCH seeks legal advice after getting PcW report


  • Business
  • Wednesday, 24 May 2006

bksidhu@thestar.com.my 

PETALING JAYA: Pricewaterhouse-Coopers (PwC) presented the much-awaited forensic accounting investigation report to KFC Holdings Bhd (KFCH) yesterday. The KFCH board of directors said it would seek legal advice before deciding on its next course of action. 

In a statement to Bursa Malaysia, KFCH said its board had received the report but added that since “many of the issues raised are subject to legal proceedings involving the company, Datuk Ishak Ismail and/or Datuk Johari Abdul Ghani, the company is seeking further legal advice on those (and other) issues and findings in the forensic report.'' 

The report was commissioned by KFCH last August last year following certain findings in PwC's high-level business review dated July 11, the statement said. 

It said the forensic report covered areas such as the 50% increase in price of beverages from Permanis Sdn Bhd to KFCH; loans of RM65mil to Utas Kurnia Sdn Bhd; the acquisition of industrial properties in JB Industrial Park (Bukit Pedoman Sdn Bhd); losses of RM94mil incurred by Rasa Sayang Holdings Ltd; and the executive directors' remuneration package. 

Four legal suits were initiated following the review. These include an action by KFCH against Ishak, Utas Kurnia, Mohd Azmi Mat Nayan, Norafizal Mat Saad and Boss Dynamic Sdn Bhd for breaches of fiduciary and trust duties relating to RM65mil in payments relating to the Mersing Hills project. 

Another suit involves action by KFCH against Ishak and Said & Shuaib Bakar in connection with breaches of fiduciary and trust duties relating to RM10mil in payments.  

There is also a defamation suit filed by Johari against KFCH and another by KFCH against Johari for breaches of his fiduciary duties to KFCH in relation to inter-alia issues arising from the 50% price increase by Permanis, Rasa Sayang's transfer of losses and JB Perdana Industrial Lands. 

 KFC :  [Stock Watch]  [News]

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