Xian Leng has made an announcement to Bursa Malaysia regarding the special audit. The article from The Edge Malaysia, about which I wrote before, is largly confirmed. "Where is Ze Moola" also has written about the matter.
The announcement is pretty vague, and many questions still remain open: what exactly happened, by who, when, where, why and how?
The company has written of the amount of RM 86 million, but if that is really realistic, why did nobody notice the huge gap between the payments done (huge) and the value of the contract work (tiny)? Huge amounts of capital expenditure of many years have been (almost) fully written off.
How is it possible the checks and balances (internally and externally) failed so hopelessly?
And even about the follow up actions, the company is deliberating its next course of action. It better hurry, the payments where done 6 years ago, memories don't get better over time and proof might get destroyed (records of 2004 and before are already not available anymore).
Xian Leng is pretty small for a listed company and the amount involved is relatively huge. I hope for some fast and decisive action, to bring some much needed justice to the minority shareholders.