Five directors of Trive Property Group Bhd have been reprimanded and fined a total of RM2.55 million by the Securities Commission Malaysia (SC) for knowingly furnishing false or misleading statements in the 2014 audited financial statements of the company to the SC and Bursa Malaysia.

Three directors namely Wong Kok Seong, Thu Soon Shien and Datuk Mohamad Amin Mohamad Salleh, who at the relevant time were audit committee members of Trive, were fined RM539,000 each.

Two other directors — Datuk Seri Dr Pang Chow Huat and Zarul Ikhwan Zarul Ahmad were fined RM465,500 each.

In a statement today, the SC said the sanctions arose as a result of its findings that Trive had failed to perform an impairment assessment on its development expenditure amounting to RM21.1
million as at July 31, 2014 in accordance with the approved accounting standards.

This resulted in Trive and its five directors breaching Regulation 4(1) of the Securities Industry (Compliance with Approved Accounting Standards) Regulations 1999 and section 369(b)(B) of the Capital Markets and Services Act 2007 (CMSA).

“Given the severity of the directors’ failure to discharge their duties in ensuring that financial statements submitted to the regulators are true and fair, the SC has imposed a total fine of RM2.55 million on the directors,” it added.

Separately, the regulator has reprimanded Trive and directed the company to address its financial reporting function. This includes a directive to Trive to appoint an external auditor to assess the adequacy of its financial reporting function.

“The SC reminds all listed corporations, directors and chief executive officers to be vigilant and ensure adherence to all relevant financial reporting standards and disclosure
requirements at all times,” it said.

“The SC views non-compliance with approved accounting standards and disclosure requirements as a serious breach,” it added.

Trive shares closed 0.5 sen or 8.33% lower at 5.5 sen today, with 7.81 million shares done, for a market capitalisation of RM89.55 million.

Source: The Edge