Thursday, May 22, 2008

ACA’s Charge NasionCom Founder

SC lauds ACA’s charges against NasionCom founder

KUALA LUMPUR: The Securities Commission (SC) said it welcomes the charges brought by the Anti-Corruption Agency (ACA) against Chee Kok Wing on eight counts of receiving bribes purportedly to incentivise SC staff to ensure the listing of GP Ocean Bhd and stop the SC’s investigations into the company.

“This development serves as a strong reminder to participants in the capital market that they should deal directly with the SC and not through individuals claiming to act for or on behalf of the SC,” said SC chairman Datuk Zarinah Anwar.

Media reports yesterday mentioned that Chee, founder of telecommunications service provider NasionCom, was charged with receiving bribes totalling some RM3.85 million. The bribes were taken by Chee purportedly to be an inducement for SC’s director for issues and investment Datuk Kris Azman Abdullah to help in the listing of GP Ocean Bhd on Bursa Malaysia and to stop a probe by the SC on GP Ocean.

On April 18, 2007, the SC had charged GP Ocean officials for submitting misleading information to the SC in connection with the proposed listing of their company, GP Ocean. The case is pending. GP Ocean hogged the limelight in June 2006 when its listing plan on the Main Board was aborted after the SC investigated possible breaches of securities laws.

The SC had also charged Chee on May 28 2007 for his involvement in the submission of false information to the SC. This was in relation to NasionCom Holdings Bhd’s financial statements for the year ended Dec 31, 2005 and NasionCom’s prospectus for listing on the Mesdaq Market. Chee was NasionCom’s major shareholder and chairman from the time of its listing on Mesdaq until last year when he watered down his stake and resigned from the board.

The SC stated in its press release that it has in place transparent processes and procedures in discharging its regulatory functions, and these are available on the SC website. The SC said it had also instituted pre-submission consultations since early 2006 for all applicants and their advisers. This has enabled applicants to better understand how the SC views submissions including reasons why some submissions are rejected.

“This is complemented by post-decision meetings with applicants to explain the outcome of their submissions. Reasons for rejection are also published on the SC’s website as future guidance for applicants and their advisers,” the SC said.

The regulator added it would continue to work closely with the ACA in ensuring that any abuse of this nature will be swiftly dealt with to protect the integrity of the capital market.

In recent years, the SC has rejected a record number of submissions pertaining to company listings and other corporate proposals that did not meet the regulator’s strict standards. The SC has also taken a much shorter time to process IPO applications — about three months on average versus a time period of nine to 12 months previously.

This remind me in the year 2004-2005 where I have less exposure to Technical Analysis and I use to be reading news and trust all the words that this GUY said. I did place a lot of hope on the company projects like broadband/wimax/etc. Ha.. ha.. ha... Luckily I did manage to sold off my holding before it collapse in 2006.
- BullTrader

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