Industronics lodges police reports over HK$96mil receivables at Hong Kong unit
KUALA LUMPUR: Industronics Bhd has lodged police reports over matters uncovered at its Hong Kong unit ECGO International Ltd, including more than HK$96 million (about RM50 million) in trade receivables that are now under review.
Industronics Bhd has reported the police over suspected irregularities at its Hong Kong subsidiary, ECGO International Ltd, involving over HK$96 million (approximately RM50 million) in outstanding trade receivables. The Malaysian company has requested the Commercial Crime Investigation Department to investigate the matter and will supply any necessary records and documents to the authorities.
Industronics revealed that its management team has identified issues requiring further investigation after scrutinizing ECOG's historical records and documentation. These matters encompass historical transactions, cash flow movements, trade receivables, inventory records, supporting commercial documentation, and corporate governance issues.
Based on the preliminary review, ECOG's records show a significant concentration of trade receivables among a select few counterparties, with the total exposure surpassing HK$96 million. The underlying transactions, recoverability of the receivables, and any potential impairment or recovery actions are still under review.
The company plans to conduct a thorough forensic examination of ECOG's historical transactions and records, including tracing transactions and fund flows, examining banking records, verifying receivables and supporting documentation, assessing recoverability, and reviewing relevant governance and control matters. This investigation aims to establish the facts and enable the board to decide on appropriate recovery, legal, regulatory, and governance actions.
Industronics has also instructed former executive director Liu Wing Yee Amy to desist from any management or operational involvement within the group immediately. The company has invalidated all access, authority, and rights granted to Liu in relation to its subsidiaries, assets, systems, records, accounts, and confidential information.
The board has resolved to take necessary steps to remove Liu from all positions within the group, subject to appropriate corporate and legal procedures. The review and investigations are ongoing, and the company has not yet determined the final financial impact, the amount recoverable, or whether additional impairment, recovery actions, or other provisions will be necessary.
The matter remains under investigation, and no final conclusion has been reached indicating any individual committed a criminal offence or other wrongdoing.
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