KUALA LUMPUR (Feb 2): Pestech International Bhd shares plummeted on Thursday (Feb 2) as much as 15.15% in early trade, from their last closing price of 31 sen on Tuesday, after two top executives of the company were charged with misappropriation of funds from its wholly owned subsidiary, Pestech Technology Sdn Bhd.
The counter opened at 28 sen, before plummeting by 10% to 25 sen a share as at 9.27am. At the time of writing, its trading volume stood at 13.76 million shares.
On Tuesday, the group confirmed that Lim Ah Hock, its executive chairman, and Lim Pay Chuan, its managing director-cum-group chief executive officer, were charged in the Shah Alam Sessions Court last Friday.
Both were charged under Section 109, read together with Section 403 of the Penal Code, which states that those found guilty of misappropriation could be jailed for up to five years, whipped, and/or fined.
Ah Hock was charged with one count of the alleged offence, while Pay Chuan was slapped with three charges.
Pestech reported that the duo and Pestech Technology’s CEO were investigated over four payments amounting to RM10.6 million to a consulting company. Pestech Technology allegedly made the payments for works not rendered by the consulting company, and Ah Hock and Pay Chuan have been accused of abetting in these payments.
Pestech confirms two top execs charged for allegedly abetting in misappropriation of a subsidiary's funds