I guess it must be too painful for the Chairman of Transmile Group Berhad (KLSE: TRANMIL, stock-code 7000) to accept the fact that he indeed screwed-up big time with the recent accounting irregularities, so much so that the richest man in Malaysia Robert Kuok has no other choice but to tell him to resign. You don’t think the Chairman resigned voluntarily from the comfort of the 5-figure monthly income, do you? Furthermore Malaysia is not known to have any leaders who accept responsibility by resign voluntarily during any scandal or crisis of confidence.
A filing in the KLSE (Kuala Lumpur Stock Exchange) today revealed that the former President of MCA (a component party of the ruling government), Ling Liong Sik has resigned from Transmile Group. In what could be the best attempt to save Ling’s face, his resignation might have been dragged until now since the book-cooking was exposed in May-2007. Who can blame the multi-billionaire Robert Kuok for taking such action who lost more than half his fortune within Transmile because of the creativity of top-management in cooking and inflating the accounting figures?
Even though the Securities Commission has finally charged three key executives of Transmile namely the founder and former 
CEO Gan Boon Aun, 46, together with ex-chief financial officer (CFO) Lo Chok Ping, 38, and ex-executive director Khiudin Mohamed, 50, you can’t simply believe that the Chairman Ling was not aware of the fictitious invoices and payments that were not supported by payment vouchers, do you? The good news is Ling can’t be charged since he carries the title “Tun”, talk about immunity.
The audit by Moores Rowland Risk Management Sdn Bhd showed Transmile posted a pre-tax loss of 172 million ringgit ($49.78 million) instead of profit of 207 million ringgit in financial year 2006 and a pre-tax loss of 67 million ringgit in 2005 instead of profit of 120 million ringgit. In addition, it also reported a smaller pre-tax profit of 8 million ringgit for the 2004 financial year than the 87 million ringgit previously announced.
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September 3rd, 2007 by financetwitter
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Comments
Don’t know about Ling but the biggest culprit is that ex-cfo….I worked there I know who is biggest SOB there….
Its juz shameful for fellows like Ling to have been paid all these years to juz do nothing. All there for show. However i still think there can be a turnaround for Transmile. Its fundamentals are solid juz that it had to many ‘mentals’ running it.
the smart investors … definitely transmile is seeing the sunshine once again with the resignation – investors do not like seeing cockraches staying around such a good company …
punkadelic … if you’re right about the ex-cfo, then it only goes to confirm that the ex-cfo received the go-ahead to cook the book from his “boss” … so everyone at the top are as guilty as him …
cheers …
Hmm the go-ahead and stuff I m not too sure as I m barely involved with the topmost people there like the Tun,etc…but yeah as far as I know the main guy who possibly orchestrated this is the ex-cfo…..possible he got the go-ahead and did all the planning etc…apparently he has got good defense in the court case now….tough luck….
in most organizations i worked for, CFO, being the highest people in charge of accounting figures normally execute instruction received from the CEO … and who do you think CEO discuss with on such a mega-plan?
definitely not robert kuok himself, and the reason why the audit firm is being replaced now speaks volume on how corrupted the whole chain of command in transmile was …
as to the strong-defence of the ex chief officers in court, it goes to show how good these culprits are or how weak the judiciary is or both …
cheers …
Oh my.. didn’t know Ling was involved…