THE Securities Commission (SC) will initiate a probe into allegation of central depository system (CDS) account abuse by Malaysian Anti-Corruption Commission (MACC) chief commissioner Tan Sri Azam Baki.
“The SC will be in touch with the parties involved, including Azam, for an explanation and to verify statements made as well as gather any relevant evidence,” the market regulator pointed out in a media statement.
Yesterday (Jan 5), Azam said he did not see it as an issue that his younger brother, Nasir, used his trading account to purchase some shares.
Allegations had surfaced that Azam owned a substantial amount of shares in Gets Global Bhd as well as Excel Force MSC Bhd between 2015 and 2016 when he was the MACC director of investigations.
The MACC advisory board had summoned him on Nov 24 to explain the matter to which Azam said it was his brother who had purchased the shares using his CDS account.
Under Section 25 of the Securities Industry (Central Depositories) Act 1991 (SICDA), the SC noted that every securities account opened with a central depository must be in the name of the beneficial owner of the deposited securities or in the name of an authorised nominee.
In addition, Section 29A of SICDA stipulates that all dealings in securities shall be effected only by the beneficial owner of the securities or an authorised nominee.
Apart from the SC, Bursa Malaysia should also act on Azam and the broker who executed the trade in accordance to Rule 5.15(8) and (9) of Bursa Malaysia Securities Bhd.
Rule 5.15 (8) stated that “If requested by the Exchange, a Participating Organisation must require a Client to disclose (and the Client must disclose) information and documents in relation to any dealing in securities in respect of the Client’s trading account”.
Meanwhile, Rule 5.15(9) elaborates that “The information referred to in Rule 5.15(8) includes information whether any dealing in the Client’s trading account is carried out on another person’s behalf and in such instance, the name of, and particulars sufficient to identify such person. If that person is not the Beneficial Owner of the securities, the Client must also be required to procure the particulars of the Beneficial Owner of the securities”.
Earlier today, Kepong MP Lim Lip Eng said both the SC and Attorney-General’s Office “have to answer to the nation” as the explanation given by Anti-Corruption Advisory Board chairperson Tan Sri Abu Zahar Ujang on Azam allowing his brother to use his trading account to acquire shares in two companies has raised more questions.
The SC has the duty to state if Azam has breached any securities law while the Attorney-General should carry out a full investigation into Azam’s case and clear him of any wrongdoings, according to Lim. – Jan 6, 2022
