KUALA LUMPUR (May 23): Technical rubber compound provider GIIB Holdings Bhd on Monday (May 23) said the group found sufficient basis, from the report of an external independent auditor, to hold its terminated executive director Wong Weng Yew accountable for misconduct, "as per charges made against him" in a show cause letter the group issued to him in March.

"Mr Wong appears to have not fulfilled his responsibility to spearhead the glove project which was entrusted to him by the board of directors of GIIB when he was first appointed as the executive director of the group and its subsidiaries.

"Mr Wong did not appear to be leading or managing the project but was trying to carry out tasks for the project. In spite of being aware of the financial consequences of a delay in the project on the group, Mr Wong did not appear to have shown urgency in completing the project.

"Additionally, there were certain claims made by Mr Wong from April 2021 to January 2022 that were not properly verified and approved. Further investigations may be warranted to determine the full extent of any losses suffered by the group as a result of these claims, which the auditor would be willing to assist (sic), under a separate mandate," it said in a bourse filing in reply to queries from Bursa Securities.

GIIB also said it has yet to ascertain the full financial impact of the external auditor's findings on the group, as well as Wong's termination, but does not envisage there to be any operational impact.

Last Thursday (May 19), GIIB (formerly known as Goodway Integrated Industries Bhd) announced Wong's termination as its executive director with immediate effect. Wong was appointed to the board in March last year to oversee the group's finances and to spearhead its glove business.

Prior to his termination, Wong was suspended from his role from March 28, during which time Wong had claimed that the actions taken against him by management was because he had raised questions about several transactions that he found to be suspicious in nature.

GIIB, however, said the suspension was done to facilitate investigation into Wong’s management of the group's accounts and the handling of the glove business. It had also issued a show cause letter to Wong.

On receiving Wong's reply to the show cause letter, GIIB had set up a committee — comprising GIIB independent non-executive directors Yong Wei Sang and Tee Jun Shern, as well as Tai Qiyao, the alternate director to Tai Boon Wee, the group's executive chairman-cum-chief executive officer — to investigate the charges against Wong.

The committee also appointed PKF Covenant Sdn Bhd as the independent auditor to assist them, and had invited Wong to attend a May 18 meeting for clarification, which the latter refused to.

Meanwhile, in its latest filing, GIIB, in reply to Bursa Securities, said the transactions highlighted by Wong included sale of machinery by GIIB Rubber Compound Sdn Bhd for RM2.95 million; sale of assets by Big Wheel Green Tyres Sdn Bhd that came up to RM2.68 million and a settlement of dispute amounting to RM5 million; renovation costs of RM62,000 by Goodway Marketing Sdn Bhd, as well as rental deposits and utilities amounting to RM16,000; and the alleged owing of a director that amounted to RM786,062.00.

GIIB said it expects to appoint an independent audit firm to look into the group's financials by end of May, and that the auditor will be expected to commence a forensic audit in early June.

GIIB shares finished unchanged at 7.5 sen on Monday, giving it a market value of RM41.58 million.

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GIIB terminates Wong Weng Yew as executive director