Saturday 1 October 2016

Dufu directors, only a fine and reprimand? (2)

Dufu did indeed announce the reprimands and fines. At least the investors in Dufu know what happened.

Interesting article from Errol Oh in The Star regarding the same matter:

"It’s not mystery meat. It’s Dufu"

Some snippets:

Lee Hui Ta, who’s also known as Li Hui Ta, was was reprimanded and fined RM150,000 because he approved the payment vouchers for those remittances to the US. In other words, he helped Yong commit the offence. Li was then Dufu’s executive director and chief financial officer (CFO).


Where there should be a sweet ending to the meal, we instead get a strange aftertaste. Despite Li’s part in facilitating the remittances to the US, the Dufu board didn’t ask him to leave.

Not only does he carry on as an executive director and CFO, but on June 18 last year, he was appointed the executive chairman to replace Hsu Chin-Shui, who had failed to secure re-election during the company’s AGM the same day.

That means Li is in a highly unusual position of being responsible for the financial management of Dufu as well as heading its board of directors.


There’s another awkward element in Dufu’s governance that should be addressed. A CFO typically reports to the CEO, but how does this work if the CFO is also the board chairman?

The Edge Malaysia in its issue of October 3, 2016 also paid attention to the same matter under the header "Paltry punishment":

"RM 200,000 is a mere 5% of the amount involved. So, does the punishment fit the crime?"

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