Highlight Dufu forms independent committee to probe alleged misappropriation of funds

by **Cals** Thu 12 Feb 2015, 01:06

Highlight
Dufu forms independent committee to probe alleged misappropriation of funds

By Supriya Surendran / theedgemarkets.com | February 11, 2015 : 3:41 PM MYT

KUALA LUMPUR(Feb 11): [size=14]Dufu Technology Corp Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) has received a letter alleging certain senior management staff had misappropriated company funds amounting to approximately RM3.9million.

In a filing with Bursa Malaysia today, Dufu (fundamental:1.55; valuation: 1.20) said further to its emergency board meeting last Monday (Feb 9) on the matter, its board was "still unable to ascertain the factuality of such allegation for the time being."

As a result, the board has set up an Independent Committee (IC), comprising three independent directors of Dufu to coordinate and oversee the investigation process, said Dufu, a precision machining component manufacturer.

Dufu said the IC comprised Dufu directors Ong Choon Heng, Khoo Lay Tatt and Ang Siak Keng. Ong is the chairman of the IC.

According to Dufu, the IC has been authorised to appoint investigation auditors to investigate the remittance of funds to the US during 2013.

The IC will also request Dufu's existing auditors Crowe Horwath to investigate remittance of funds to the US in 2014.

Also, the IC is authorised to investigate potential related-party transactions.

At 3:20pm, Dufu shares fell six sen or 15% to 35 sen with some 12 million shares done.

[size=12](Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)[/size]
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