Pestech’s top management charged for alleged misappropriation of assets

The case will not have any financial and operational impact on the group

PESTECH International Bhd has confirmed that its executive chairman Lim Ah Hock and its MD and group CEO Lim Pay Chuan were charged in the Sessions Court in Shah Alam, Selangor.

The charge was framed under Section 109 of the Penal Code and read together with Section 403 of the same Act, which provides a jail term of not less than six months and not more than five years, and with whipping and fine, upon conviction.

The company told the stock exchange yesterday that both were accused of abetting the misappropriation of assets of its wholly owned unit, Pestech Technology Sdn Bhd (PTech), to four payments amounting to RM10.6 million.

It said the public prosecutor has issued one charge to Ah Hock and three charges to Pay Chuan for the offences.

According to Pestech, Ah Hock, Pay Chuan and PTech CEO were investigated on the payments paid to a consulting company.  

“PTech was alleged to have made the payments for works not rendered by the consulting company, while Ah Hock and Pay Chuan were alleged to have abetted PTech CEO for the payments,” it said.

It is learnt that on Nov 9, 2022, there were four charges brought against PTech CEO under Section 403 of the Penal Code.

Pestech said notices dated Jan 25, 2023, were served to Ah Hock and Pay Chuan, and to be present at Sessions Court in Shah Alam.

Pestech said it does not expect the case to have any financial and operational impact on the group.

“Both Ah Hock and Pay Chuan have strenuously denied and claimed trial in respect of all the charges and allegations against them. They will defend and clear themselves of the said charges and allegations in court, as both individuals have represented that neither of them had benefitted from the payments,” Pestech said

Pestech said after due consideration, its board decided and concurred unanimously that it is not necessary to take any action against the accused until the court decides otherwise. – TMR / pic TMR File