Caely seeking information from MACC on frozen bank accounts

KUALA LUMPUR: Caely Holdings Bhd is making inquiries with the Malaysian Anti-Corruption Commission (MACC) over the freeze order issued on its bank accounts.

In response to a query by Bursa Malaysia Securities, the lingerie manufacturer said it had received a letter from CIMB Bank informing it of the MACC's freeze order, while all of its bank accounts and those of its subsidiaries have been frozen.

However, it added that it has no knowledge of the particulars or the reason for the MACC's action as the freeze order was never served on the company.

The company said that it is currently exposed to potential lawsuits and claims for breach of contracts as it has been unable to make payments and fulfill its commitments due to the freeze order.

"The company has communicated with the banks to allow the company to use the monies and requested for reason for freezing the accounts.

"We have requested to unfreeze the accounts but we have yet to receive any response from the banks. Also, enquiries with MACC is still in progress," it said in the statement.

Caely first informed Bursa Malaysia of the freeze order in an April 18 filing with the stock exchange operator, noting that an authority had suspended all its bank accounts.

It said it expected an impact on the financial and operational aspects on the Caely group of companies as a result of the freezing order, although it was unable to ascertain the full financial and operational impact at that juncture.

At 12.30pm, Caely traded 1.5 sen or 3.49% lower at 41.5 sen a share on the back of 1.66 million shares exchanging hands.