KUALA LUMPUR (March 1): Developer YNH Property Bhd, whose lapses in governance raised eyebrows recently after several delayed disclosures, has redesignated its senior independent, non-executive director Khong Kam Hou as chairman of its audit committee to help the group in fulfilling its oversight and fiduciary duties.

Khong will lead a three-member team to help the board to, among others, assess its processes relating to risks, oversee the group's financial reporting, and evaluate the group's internal and external audit processes, YNH said in a statement.

“The most immediate and critical task of the audit committee headed by Khong will be to appoint an independent external auditor,” YNH said.

“Over the past few months, the board of directors have been carefully evaluating several candidates for the role in order to be recommended to the independent non-executive directors that make up the audit committee. YNH is confident that the external auditor will be appointed very soon after the members of the audit committee have undertaken a thorough and objective assessment,” YNH added.

Besides the delayed disclosures relating to certain transactions it had undertaken and terminated in 2016 and as recently as April 2022, which the group only announced last year and early this year, YNH's previous external auditor Baker Tilly Monteiro Heng PLT had issued a qualified opinion on its financial statements for the 18 months ended June 30, 2023, over its joint venture and turnkey contracts for property development works.

Baker Tilly has, since the conclusion of the group's annual general meeting on Dec 8, 2023, ceased to be the company's external auditor. It had notified YNH that it did not wish to seek a reappointment as YNH's auditor, prior to the company tabling a resolution to reappoint it to the role.

Khong, meanwhile, first joined the group's board at end-March last year, when he was also made a member of its audit, nominating and remuneration committees. Prior to that, he had his own practice as a licensed tax consultant for 27 years between 1992 and 2019. He also spent 16 years with the Inland Revenue Board and was involved in tax assessment, corporate taxation and tax investigations, before he left IRB as a senior tax officer in 1992.

YNH also announced the appointment of Lee Zhi Yan as its new independent non-executive director as well as a member of its audit, nominating, and remuneration committees.

Currently a general and sales accounting manager at Goodyear Malaysia Bhd, Lee holds certifications from the Malaysian Institute of Accountants, the Malaysian Institute of Certified Public Accountants, and Chartered Accountants Australia and New Zealand.

YNH also redesignated its independent non-executive director Ching Lee Fong as its nominating committee chairman. He is also a member of the audit and remuneration committee. Ching, who also first joined YNH's board in March last year, has over 23 years of experience in electrical and electronics engineering.

“The group is confident that the breadth and depth of experience and capabilities of the members of its audit, nominating and remuneration committees will play an important role in enabling the board of directors and the group to inculcate high standards of corporate governance within the organisation,” YNH said.

YNH shares closed at 56 sen on Friday, up 3.5 sen or 6.6%, valuing the group at RM285.66 million.  

The Dr Yu Kuan Choy-linked stock was one of the most badly hit small-cap stocks in the market sell-off that began around the second week of January this year, hitting multiple limit downs. It has lost RM3.48 or 86% in value since the start of this year.

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