PETALING JAYA: Mudajaya Group Bhd’s former employee, who was sued by the company for alleged breach of fiduciary duty, was arrested in Bangkok and brought back to Malaysia.
In a filing with Bursa Malaysia, the group said the former employee, Michael Chua Khian Keng, was charged in the Petaling Jaya Magistrate’s court on Feb 26, 2019, under Section 403 of the Penal Code for Dishonest Misappropriation of Property amounting to RM800,000.
According to recent development by the Police and the Attorney General’s Chambers on the criminal charges against Chua, he was allowed bail of RM10,000 with one surety and was required to report to the Kota Damansara Police Station once a month.
While it applauded the relevant authorities for successfully apprehending Chua, Mudajaya said it is “baffled” by the magnitude of the charges against the former employee.
“There is a disparity and differences in the findings of the Police and the AG’s Chambers compared to the findings in the KPMG’s forensic report dated April 16, 2015 and the civil judgement dated Sept 18, 2018 amounting to RM72.2 million and RM55.8 million respectively,” it said.
Mudajaya said it has sent a letter of representation to the AG’s Chambers on Feb 28, 2019 seeking clarification on the disparity and differences.
“The company and management will continue to follow up on the clarification and information on the above charges until a satisfactory explanation is afforded by the relevant authorities,” it added.
To recap, the group announced in March 2015 that it had found additional costs incurred in a specific project undertaken by the group.
An internal comprehensive review revealed that irregular transactions were recorded in one project involving the former employee.
In February last year, the group initiated a lawsuit against Chua for alleged breach of fiduciary duty or trust and subsequently in October, the group obtained a judgment in default against Chua.