ATTA Global Group Bhd, which saw a suspension of trading at noon on Jan 16, announced today that the group’s executive chairman, Ooi Chieng Sim, was remanded by the police following a raid on the group’s premises for investigation of an offence under the Dangerous Drugs Act 1952.
The raid, on Jan 16, was on a portion of the group’s premises at the Prai Industrial Estate which is tenanted by a third party. Ooi is also executive chairman of Heng Huat Resources Group Bhd.
The announcement noted that Ooi’s personal banking and Central Depository System (CDS) accounts have been frozen, along with the personal banking accounts of ATTA’s executive director Ng Chin Nam.
A total of nine banking accounts in the name of the group and its subsidiaries – Duro Metal Industrial (M) Sdn Bhd, SMPC Industries Sdn Bhd, Syarikat Perkilangan Besi Gaya Sdn Bhd and Progerex Sdn Bhd – have also been frozen.
The securities maintained in the CDS accounts belonging to the company’s subsidiaries, namely Progerex Sdn Bhd and Park Avenue Construction Sdn Bhd, have been suspended as well. Some of the group’s motor vehicles were also seized.
This is expected to have a substantial effect on the group’s financials and operations.
As a result, the board of directors have moved to terminate the tenancy agreement with the third party with effect from Jan 20, appointed Chiok Kian Chau as acting chairman in the absence of Ooi, and set up an ad hoc committee to oversee operations in the meantime.
Meanwhile, Heng Huat noted that, other than the freezing of the accounts of its independent non-executive director Ng and chairman Ooi, along with the bankers’ acceptance facility accounts totalling RM3.7 mil of the two non-major wholly-owned subsidiaries, namely HK Gua Musang Sdn Bhd and HK Kitaran Sdn Bhd, none of the Heng Huat group and directors’ banking accounts, CDS accounts and assets were frozen.
“The freezing of the facility account by the bank that provides the facility is due to the bank’s internal policy in view of the trading suspension of Heng Huat,” said the group via a bourse announcement today.
Heng Huat does not expect any impact on the group from Ooi’s remand.
As of the suspension, ATTA’s shares were last done at 44.5 sen, while Heng Huat’s shares, which were also suspended on Jan 16, were last done at 3.5 sen. – Jan 21, 2020