INTEGRATED supply chain management provider MMAG Holdings Bhd has suspended with immediate effect two directors of an 80%-owned subsidiary pending the outcome of investigations of a Malaysian Anti-corruption Commission (MACC) investigation.

MACC had raided the office of M Jets International Sdn Bhd on Feb 13 for information and documents pertaining to a report made to MACC, following which the subsidiary’s accounts have been frozen.

The information was disclosed to MMAG in a letter from M Jets International received on Feb 19, MMAG said in an exchange filing today.

M Jets International is fully managed by both Gunasekar Mariappan and Philip Phang Kin Ming from JT Aerotech Solutions Sdn Bhd with MMAG having limited access, MMAG said in the filing.

MMAG said it was in the mid of seeking further clarification in details from both Gunasekar and Phang, as they are the personnel in charge of executive functions and day-to-day running without MMAG’s involvement.

MMAG said it has suspended the duo “to protect MMAG, the business of M Jets International and to ensure business continuity”.

M Jets International, with the remaining 20% stake owned by JT Aerotech Solutions, has obtained the Air Operator Certificate (AOC) from the Civil Aviation Authority of Malaysia to operate its Kargo Xpress air cargo logistics and chartered flight services, according to the company website.

MMAG is a full-fledged integrated supply chain management company that provides first-, mid- and last-mile delivery services in Malaysia and across Asia with full connectivity by air, sea and land. Its subsidiary Line Clear Express provides nationwide courier service.

At mid-day today, MMAG stock was trading at two sen, giving it a market capitalisation of RM48 million. — TMR / pic source: mmag.com.my