Ageson sues former MD, director and others over alleged scheme to defraud company

KUALA LUMPUR (March 18): Ageson Bhd, formerly known as Prinsiptek Corp Bhd, had this week filed a suit against its former managing director Datuk Foo Chu Jong, its executive director Foo Chu Pak, and five others for breach of statutory duty and conspiracy to injure the company.

The suit was filed at the High Court here by Messrs Kandiah Partnership on Tuesday, where it also named MH Maju Holdings Sdn Bhd, Fab Builders Sdn Bhd, Rapi Mulia Sdn Bhd, Fatimah Kamaluddin and Zairul Hasnan Md Ariffin as defendants.

MH Maju is a company involved in machinery rental and leasing, Fab Builders is involved in the transportation industry, and Rapi Mulia is a project contractor. Fatimah and Zairul are former directors of Rapi Mulia.

Chu Jong and Chu Pak were previously shareholders of Ageson who resigned from their directorships in June last year.

In the suit sighted by theedgemarkets.com, Ageson said it was filed after the company engaged Ferrier Hodgson (FH) to undertake a comprehensive audit exercise on the costs incurred by Prinsiptek (M) Sdn Bhd, a former unit of the company.

Prinsiptek was awarded a construction contract in 2016 for a 44-storey apartment block together with a car park podium and amenities in Sentul, Kuala Lumpur.

The construction was financed by banking facilities from Malayan Banking Bhd (Maybank) amounting to RM351.85 million, with Ageson providing a corporate guarantee on the loan.

According to the statement of claim, despite Prinsiptek no longer being either a subsidiary or even an associate of Ageson, the company continued to make payments to Maybank in order to discharge its obligation under the corporate guarantee.

“Based on FH’s findings, it unearthed numerous bogus and/or dubious payments by Prinsiptek to certain consultants and third parties with a total sum of RM24.175 million.

“These payments were disguised in an elaborate scheme to siphon money out of Prinsiptek to the detriment and loss of Ageson,” the company said, alleging that the main perpetrators in the illegal scheme are Chu Jong and Chu Pak with the complicity of the others acting in concert with both of them.

Ageson also alleges that Chu Jong and Chu Pak had breached their duties as directors and their fiduciary duties owed to the company that resulted in the eventual demand by Maybank on the company's corporate guarantee.

It further claimed that the duo acted with the intention of causing wrongful loss to the company, and has breached their statutory duties under section 317A of the Capital Markets and Services Act 2007.

The company further claimed that all the defendants were involved in a conspiracy to injure the company, hence it is making a claim for monies and a claim for equitable remedy of tracing.

Following this, it is seeking an order of restitution damages against Chu Jong and Chu Pak for RM23.77 million, along with damages in equity, damages for conspiracy including aggravated and or exemplary damages.

For the other defendants, it is seeking an order of restitution damages of RM3.492 million against MH Maju, another RM12.678 million from Fab Builders and RM6.282 million from Rapi Mulia, along with damages in equity, damages for conspiracy including aggravated and exemplary damages, and costs of the action.

In an announcement to Bursa Malaysia, the company said it does not expect any financial and operational impact arising from the filing of the writ and statement of claim, save for the legal fees disbursements.

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