Companies Commission drops charges

PETALING JAYA: The Companies Commission of Malaysia (CCM) recently withdrew its charge against Sime Darby Holdings Bhd group human resource executive vice-president Mohamed Ishak Abd Hamid for allegedly failing to produce documents relating to an on-going investigation.

It was learnt that the CCM also withdrew its case against KPMG Corporate Services Sdn Bhd executive director Tan Kim Chuan, who was charged with a similar offence.

“The charges were withdrawn last month. Investigations are, however, still ongoing and the parties are cooperating with the CCM,” a source told StarBiz.

The source said both parties had since complied with the statutory act and that the CCM had decided to withdraw the charges.

“Consent is being obtained from the DPP (deputy public prosecutor) to withdraw the charge,” the source said.

The source added that the reason for CCM to press the charge was to send out a message to corporations in Malaysia and its officers that it was serious with its enforcement action.

Ishak and Tan were both charged at the Kuala Lumpur Sessions Court in October under Section 7B(2) of the Companies Act 1965, which carries a maximum jail sentence of three years or a RM10,000 fine or both if found guilty.

Section 7B says CCM can issue a notice to “any officer of a corporation or any person’’ to produce documents for the purpose of ascertaining whether the corporation or any of its officers is complying with the Companies Act.

It is unclear as to what is the focus of the CCM investigation or what documents were initially requested from Ishak. CCM in its statement announcing the suit did, however, say Tan had failed to produce audit working papers to the CCM investigating officer.

Ishak was unavailable for comment.

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