Pipes being coated at one of Wah Seong Corp Bhd's plants.
KUALA LUMPUR: Wah Seong Corp Bhd’s indirect unit PPI Industries Sdn Bhd, one of the steel players whose bank accounts were frozen under the Customs Department’s industry-wide audit earlier this year, did not break any law.
The energy infrastructure group told Bursa Malaysia that the audit and investigation conducted by the Customs Department together with other governmental bodies had been completed and found that its welded steel pipe making subsidiary did not breach any laws or regulations.
“Hence, there were no penalties imposed and no action being taken against PPI. The matter is duly resolved and closed,” Wah Seong said.
It added that PPI’s bank accounts and assets that had been temporarily frozen had been unconditionally released pursuant to a revocation order dated June 10 and a letter dated June 13 issued by the Customs Department (received on June 27).
On Feb 23, the Customs Department took custody of certain records and documents from PPI’s business premises in Penang. Some of PPI’s bank accounts were also frozen to facilitate the department’s audit and investigation.
Subsequent to the industry-wide audit, the Malaysian Iron and Steel Industry Federation lodged a complaint with the Finance Ministry on concerns that the audit was conducted in a high-handed manner.
According to Wah Seong, PPI’s business operation is on-going as usual and has resumed to normal. It added that the audit and investigation by the Customs Department did not have any implication on the financial and operation of PPI or on the Wah Seong group.
Among PPI’s major contracts won last year was a RM188.96mil order to supply coated steel pipe piles for the Pengerang Deepwater Petroleum Terminal Project,
Wah Seong shares closed unchanged at 66.5 sen on Tuesday with 470,200 shares done.
Limited time offer:
Just RM5 per month.
