Silver Bird sues ex-directors, ex-GM, firms and auditors (7136)

KUALA LUMPUR: Silver Bird Group Bhd
has filed a suit against two of its former directors, an ex-general
manager, several companies and its auditors at the Kuala Lumpur High
Court claiming RM125.03mil as special damages, general damages,
punitive and aggravated damages, interest and costs.
The company said that this suit followed the Forensic Accounting Review Report by PKF Advisory Sdn Bhd including further internal investigations. The plaintiffs to this suit are Silver Bird and its subsidiaries Stanson Marketing Sdn Bhd and Standard Confectionery Sdn Bhd.
Silver Bird named ex group MD Datuk Jackson Tan Han Kook, former executive director Ching Siew Cheong and ex-general manager for accounts and finance Lai Poh Mei as the first three defendants.
Claims
against these three individuals are premised on “inter alia creating
various fictitious transactions, engineering false accounting records
and committing fraud against the plaintiffs for the primary purpose of
misappropriating funds from the plaintiffs and/or with the sole and/or
pre-dominant intention of injuring the interests of the plaintiffs.”
The three and and four other companies Asia Food Link Sdn Bhd, Triremis (M) Sdn Bhd, Triremis Asia Sdn Bhd and Bill Davis & Associates Sdn Bhd were accused of committing fraud and conspiracy, the statement to Bursa Malaysia said.
They
are accused of either conducting several transactions which are
“fictitious and non-existent” or for several agreements which was
“fictitious and unenforceable.”
These companies had been accused
of “dishonestly and/or knowingly assisted and/or aided and abetted
and/or was an accessory to the first to third defendants (the three
individuals) in breach of the fiduciary duties to the plaintiffs and
the duties to the plaintiffs, resulting in loss and damage to the
plaintiffs.”
Silver Bird also named the external and internal auditors of the company – Crowe Horwath, Audex Governance Sdn Bhd
and Focus Internal Audit Solutions – as defendants which were alleged
to have “breached their duties and/or obligations to the plaintiffs
and/or were negligent.”
The company said the suit against all the defendants was fixed for case management at the High Court on Sept 3.
Meanwhile,
it had been reported yesterday that Silver Bird had been served a writ
of summons by Ching who was suspended on April 30 after the company’s
AGM.
Ching is claiming loss of salary amounting to RM90,000 from
the date of termination, along with RM600,000 in damages for wrongful
termination of employment. He is also claiming RM2mil in losses, which
resulted from the force-selling of Silver Bird’s shares as a result of
what he claimed was mismanagement on the board’s part and the company
going into PN17 status.