KUALA LUMPUR (Sept 9): Lambo Group Bhd has reached out to China's finance ministry and the past and present auditors of its indirect wholly owned subsidiary Fujian Accsoft Technology Development Co Ltd over alleged wrongdoing in relation to Fujian Accsoft's financial report.

In a Bursa Malaysia filing on Friday (Sept 9), Lambo noted that it on Aug 25 appointed Messrs Cheng + Kheng Hoe to assist the company in relation to the investigation into Fujian Accsoft.

On Aug 29, it sent letters to the ministry to seek further clarification on the matter, and also the auditor of Fujian Accsoft to obtain explanations and documentation.

Following that, Lambo on Tuesday (Sept 6) sent a letter to Fujian Accsoft's previous auditors to obtain documentation pertaining to the audit for Fujian Accsoft's financial year 2018.

Additionally, it is also in the midst of negotiating with law firms in Hong Kong and China to engage them for assistance.

"As of the date of this announcement, there were no material developments relating to the above matters and the company is still pending the replies from the relevant parties.

"The company shall make the necessary announcement(s) as appropriate when there are further developments to this matter," said Lambo.

China's Global Times reported in July that the country's finance ministry had imposed an administrative fine against an accounting firm for cross-border accounting audit supervision on Fujian Accsoft.

The report said that Fujian Accsoft's 2016-2018 financial report was seriously falsified and constituted a suspected crime, and added that the accounting firm should take major responsibility for the audit of the financial statements amid severe lack of audit procedures.

The ministry's inspection also found that Fujian Accsoft continued to see losses from 2016 to 2018 and it had no more than five employees during the time.

"Relevant audit reports, as well as the 2018 annual bank report, inquiry letters, bank statements, purchase and sales contracts and other supporting documents the subsidiary provided, were fake," the report stated.

Fujian Accsoft, which is involved in software development, internet information services, enterprise management and consulting services, was dissolved in May this year, according to the report.

Lambo's share price finished 12.5% or half a sen higher at 4.5 sen on Friday, bringing a market capitalisation of RM69.3 million.

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