Wednesday, 16 September 2015

Patimas: will there be justice? (2)

I wrote before about Patimas. I ended the posting with the following:

"Will the authorities take appropriate action within a reasonable timeframe? Time will tell."

That question has been answered by Bursa, some snippets:

Bursa Malaysia Securities Berhad (635998-W) (Bursa Malaysia Securities) has publicly reprimanded Patimas Computers Berhad (PATIMAS) and its 4 executive directors at the material time for breaching the Bursa Malaysia Securities Main Market Listing Requirements (Main LR).  In addition, the 4 executive directors of PATIMAS were fined a total of RM1,986,200.

All the 4 executive directors had or should have knowledge of the financial affairs of PATIMAS including these transactions and were in a position or had the reasonable means to detect, ascertain, address and/or resolve the veracity of the transactions and the audit issues arising from the same.  This was particularly in light of the nature, irregularities and magnitude / materiality of the transactions and their position, roles and responsibilities in the Company (including as directors in the subsidiaries involved in these transactions) as well as their knowledge of and/or involvement in the transactions.

Is the punishment enough, will it act as a deterrent? I don't think so, I think only a jail sentence will suffice.

Jail sentences are rarely given in offences regarding listed companies in Malaysia, but we just saw one example where the Securities Commission indeed managed to get the former Managing Director of Pancaran Ikrab Berhad (PIB) jailed for six years, and fined RM1 million.

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