Thursday, March 29, 2007

Regarding That Fountain View Again.

My Dearest Moo Moo Cow,

You have missed out a news report when you posted on that Fountain View Again this morning.

  • 28-03-2007: Fountain View ED ordered to restitute RM27.99m to company
    Fountain View Development Bhd executive director Datin Yam Yuet Chew has been ordered to restitute RM27.99 million to the company for breach of Bursa Malaysia Securities Bhd listing requirements (LRs).

    She was also fined to the tune of RM700,000. Yam was among Fountain View's eight current and former directors who were all publicly reprimanded by Bursa Securities and/or fined.

    In a statement on March 28, Bursa Securities said it was publicly reprimanding Fountain View for breach of paragraphs 9.16(1)(a) and 8.23(1).

    Paragraph 9.16(1)(a) states a listed issuer must ensure that each public or press announcement is factual, unambiguous, accurate, and contains sufficient information to enable investors to make informed decisions.

    Paragraph 8.23(1) relates to the provision of financial assistance to directors, employees, subsidiaries, sub-contractors or immediate holding company.

    Apart from the two paragraphs, Yam and another executive director Taufek Yahya were also in breach of paragraph 8.23(2)(a) which states that directors must ensure the financial assistance or advances were not detrimental to the company.

    Taufek was fined a total of RM150,000 for breaching the LRs.

    Another person who breached the rules was Tiew Chai Beng, who was fined RM5,000, while Loh Yoon Wah and former director Kington Tong were fined RM2,500 each.

    Also reprimanded but not fined were Fountain View's chairman Datuk Abdul Rashid Maidi, former director Lim Peng @ Lim Pang Tun and former chairman Datuk Miskon @ Miskam Setera @ Setero.

    Bursa Securities said Fountain View had breached paragraph 9.16(1)(a) for failure to take into account the adjustments as explained in the company’s announcement on May 26 last year in its fourth quarterly report for the financial year ended Dec 31, 2005.

    It had reported an unaudited loss after taxation and minority interest of RM5.364 million for the year ended Dec 31, 2005 versus an audited loss of RM68.488 million.

    Bursa Securities said the difference of RM63.124 million represented a 1,176.8% deviation.

    It said Fountain View breached paragraph 8.23(1) in respect of the payments made to Bizvista Success Sdn Bhd in 2004 totaling RM27.99 million on behalf of Wright Mart Sdn Bhd and Burke Greenville Sdn Bhd prior to its board of directors’ approval for the proposed subscription of Wright and Burke on May 26, 2004.

    Bursa Securities said such financial assistance was prohibited under paragraph 8.23. Yam was directed to rectify the breach by restituting to Fountain View the RM27.98 million paid to Bizvista within 30 days.

    The breach of paragraph 8.23(2)(a) was in relation to the failure to ensure that the advances to a contractor, Matrix Home Sdn Bhd, totalling RM31.1 million were fair and reasonable.