Bursa publicly reprimands Faber and Lebtech for breaches

by **hlk** Thu 24 Nov 2011, 18:29

PETALING JAYA: Faber Group Bhd was publicly reprimanded by Bursa Malaysia for failing to immediately announce the non-renewal of contracts awarded by the emirate of Abu Dhabi's Western Region Municipality (WRM) while Lebtech Bhd was reprimanded for failing to take adjustments stated in the company's fourth-quarter report into account.

The regulator said in separate announcements that the contraventions were viewed seriously and reminded the board of directors of both companies of their responsibility to maintain appropriate standards of responsibility and accountability.

It did not find any of Faber's or Lebtech's directors to have caused or permitted a breach.

“It is unacceptable for Faber to temporarily refrain from publicly disclosing the non-renewal of contracts on the premise that the company was taking immediate steps to ascertain the reasons for the non-renewal and to further negotiate with the WRM,” it said.

Faber had made the announcement on Jan 12 although the company had been informed of the non-renewal of the contract on Jan 10. Bursa noted the delay of two market days as well as the material price and volume movement of the company's securities upon announcement of the non-renewal.

Meanwhile, Bursa said Lebtech would be required to carry out a limited review of the company's quarterly report submissions.

The company had not taken into account in an announcement made on April 29 any adjustments made to the fourth quarter ended Dec 31, 2010 report (where there was a deviation of 481% between the unaudited and audited results), which was announced on Feb 25.

“The limited review must be performed by external auditors for four quarterly reports commencing no later from Lebtech's quarterly report for the financial period ending Dec 31, 2011,” it said.

Furthermore, the company must ensure all directors and the relevant personnel attend a training programme in relation to compliance with the Main Market listing requirements pertaining to financial statements.