Saturday, November 06, 2010

Satang Says No .... Money.

On Star Business: Satang cites lack of funds for delay in starting special probe

  • Saturday November 6, 2010

    Satang cites lack of funds for delay in starting special probe

    PETALING JAYA: Satang Holdings Bhd said the special investigation by accounting firm Ernst & Young, which was supposed to have started Oct 18, has not begun due to the lack of funds.

    The company told Bursa Malaysia on Thursday that the board of management had in the meantime requested a written quotation from another reputable accounting firm to undertake the investigation.

    The board of directors had engaged Ernst & Young to conduct an in-depth investigation into the alleged irregularities presented to it by Satang’s audit committee.

    The committee’s report had led to managing director Malim Mohamed being suspended from his position on Aug 11.

    On Nov 1, the board had in a meeting approved to dissolve its existing audit committee entirely with immediate effect and agreed to reconstitute the new audit committee within 21 days.

    The decision to dissolve Satang’s existing audit committee followed independent and non-executive director Datuk Anuar Jaafar’s resignation from the committee, which was announced to Bursa on Nov 1.

    On Nov 3, Bursa directed Satang to re-instate and reconstitute its existing audit committee within five working days of the date of its directive.

    This means Satang has till next Wednesday.

    The exchange highlighted that the dissolution of Satang’s audit committee was inconsistent with the requirement to maintain an audit committee at all times in accordance with Paragraph 15.09 (1) of the listing requirements.

    Bursa also said it found that the company’s rationale for dissolving the audit committee as stated in the announcement to the exchange on Nov 2 to be unacceptable.

    The exchange had advised the board that the audit committee could not be dissolved. Therefore, the board had to take steps to reinstate the audit committee with immediate effect, it said.

Another one for my scrapbook.


solomon said...

First time I hear a AC can be dissolved.....Lack of fund?? You have a million in cash, did your audit cost a million??

Please inform the investing public how much is the audit cost first?? Are you recently given a contract by our Government?

Where went wrong leh, the company or hmmm?? I need a panadol.....

Jianzhou said...

do u hav any idea wat's the hidden agenda behind Masterskill??
why a seems to be fundamentally sound company can ended up like this??
checked the BS, cash flow everything seems fine.

ronnie said...

It would make sense that SC makes it mandatory for all PLCs to deposit say RM500k with the SC which will be used in the appointment receivers & managers, auditors, etc.

ronnie said...

Alas Masterskill is not able to use share buyback at this juncture to support its share price like one of the packaging cos.