SERSOL

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SERSOL BERHAD ("SERSOL" OR "THE COMPANY") - CLARIFICATION ON THE NEWS ARTICLES ENTITLED: "HAS SERSOL HEAD HONCHO JUSTIN LIM HWA TAT GONE INTO HIDING?" AND "MACC LOOKING FOR MAN WITH 'DATUK' TITLE TO ASSIST INVESTIGATION"

SERSOL BERHAD

Type Reply to Query
Reply to Bursa Malaysia's Query Letter - Reference ID IQL-14072023-00001
Subject SERSOL BERHAD ("SERSOL" OR "THE COMPANY") - CLARIFICATION ON THE NEWS ARTICLES ENTITLED: "HAS SERSOL HEAD HONCHO JUSTIN LIM HWA TAT GONE INTO HIDING?" AND "MACC LOOKING FOR MAN WITH 'DATUK' TITLE TO ASSIST INVESTIGATION"
Description 
SERSOL BERHAD (SERSOL OR THE COMPANY) 
- CLARIFICATION ON THE NEWS ARTICLES ENTITLED:
"HAS SERSOL HEAD HONCHO JUSTIN LIM HWA TAT GONE INTO HIDING?"
"MACC LOOKING FOR MAN WITH 'DATUK' TITLE TO ASSIST INVESTIGATION"
Query Letter Contents

We refer to your Company’s announcement dated 13 July 2023, in respect of the aforesaid matter.
In this connection, kindly furnish Bursa Securities with the following additional information for public release:-

1) The details of the investigation and circumstances leading to the investigation, including

the date on which the Company was contacted by MACC for the investigation on Datuk Wira Justin Lim Hwa Tat (“Datuk Justin Lim”) (“MACC Investigation”).

2) The details of the payments made by the Company to a third party (“Payments”), which were approved and instructed by Datuk Justin Lim. In this regard, to disclose the date(s) of payment, amount paid, name of the recipient & purpose of payment. To also state whether the directors, major shareholders of the Company or persons connected with them has any direct or indirect interest in the Payments.

3) The position in the Company held by Datuk Justin Lim at the time of Payments.

4) The financial and operational impact of the MACC Investigation to the Sersol group.

5) The steps taken or proposed to be taken by the Company in respect of the MACC Investigation.

6) The steps taken or proposed to be taken by the Company in respect of the CEO’s absence from office.

Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.

 

Yours faithfully,

Listing Division, Regulation
 

Cc : Market Surveillance Dept. , Securities Commission (via fax)

Reference is made to the Company’s announcement dated 13 July 2023 (Announcement) in relation to the Clarification on the News Articles.

 

(The abbreviations used herein are consistent with those stated in the Announcement unless defined otherwise.) 

 

The Board of Directors (Board) wishes to announce the following additional information as requested by Bursa Malaysia Securities Berhad:

  1. MACC visited Sersol's office on 26 June 2023 and subsequently recorded statements from the former Executive Director, the existing Executive Director and the Independent Directors of the Company in relation to certain payments made by the Company to a third party ("Payments”), which were approved and instructed by Datuk Wira Justin Lim Hwa Tat ("Datuk Wira Justin Lim"). At this stage, the Company is not in the position to ascertain whether Datuk Wira Justin Lim is the target of the investigation.
  2. Based on the statements taking conducted by the MACC, the payments which were approved and instructed by Datuk Wira Justin Lim were in relation to 5 payments totalling RM2.5 million made to HGC Legacy Enterprise and recorded as deposits during April and May 2023 with purposes yet to be made known to the Board. At this stage, it appears that the only member of the Board who can establish contact with Datuk Wira Justin Lim is Dato' Lim Tiong Siang, the father of Datuk Wira Justin Lim. Without the clarification/explanation of Datuk Wira Justin Lim and pending the Company to take further action (if any), the Company is not in the position to state whether the directors, major shareholders of the Company or persons connected with them have any direct or indirect interest in the Payments.
  3. Datuk Wira Justin Lim was the Managing Director at the time of payment.
  4. The potential losses currently identified is RM2.5 million should the deposit payment to HGC Legacy Enterprise could not be determined or recovered for any investment or asset purchase or for any business purchase purposes. As the deposit payments are not related to any existing business, the Board foresees that there would not be any operational impact on Sersol Group.
  5. The Company will provide full cooperation to MACC for its investigation.
  6. The Company is in the process to resolve how to deal with the CEO’s absence from office. In the interim, the Company urges the CEO to furnish full cooperation to the MACC and to have the Company’s interest at priority.

This announcement is dated 17 July 2023. 


Announcement Info

Company Name SERSOL BERHAD
Stock Name SERSOL
Date Announced 17 Jul 2023
Category General Announcement for PLC
Reference Number GA1-17072023-00050


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