HHRG issues show cause letter to CEO, extends suspension

• “The suspension is extended until further notice pending Fong’s reply to the show cause and the board's deliberation on his reply,” HHRG said.

KUALA LUMPUR (April 29): HHRG Bhd (KL:HHRG), formerly known as Heng Huat Resources Group Bhd, said that the company has issued a show cause letter to its CEO Fong Chee Khuen.

The biomass material manufacturer said that it has also extended Fong’s suspension pending his response to queries on financial transactions and personal conduct, according to a filing on Tuesday.

“The suspension is extended until further notice pending Fong’s reply to the show cause and the board's deliberation on his reply,” HHRG said.

HHRG assured that updates would be announced as and when there are further developments.

Executive deputy chairman Datuk Paduka Ammar Shaikh Mahmood Naim has been handling all operational duties for the time being, the company previously said.

Fong was initially suspended for two weeks from April 7 and another two weeks until May 4 before the latest suspension.

Fong’s suspension comes amid a dispute between HHRG’s largest shareholder, Cfamillie Holdings Sdn Bhd (linked to the Ch’ng family), and the company’s board, where Cfamillie has no current representation.

The dispute is mainly over MG Furniture Sdn Bhd, which HHRG owns 51% of through a share sale agreement with Cfamillie in 2022.

HHRG is in the midst of a court-approved investigation into MG Furniture.

As part of its investigation, HHRG got a court order to stop MG Furniture’s managing director Ch’ng Chen Mong, director Tan Poh Cheng and their son Ch’ng Boon Sin — all from the Ch’ng family behind Cfamillie — from entering the company premises, except for official duties with prior notice.

Want to have a more personalised and easier house hunting experience? Get the EdgeProp Malaysia App now.