News

Palm Oil Co-Op Accused of Failing to Deposit RM9M

2 months ago
2 months ago


Breaking News: Palm Oil Management Company Charged with Failure to Deposit Funds

Overview

A management company overseeing a palm oil co-operative scheme, East West Horizon Plantation Bhd (EWHPB), has been charged with failing to deposit RM9,647,971.71 into the group’s reserve fund trust account last year. The Companies Commission of Malaysia (SSM) reported this development, highlighting the legal proceedings against EWHPB and its representative, Jessie Tang.

Details of the Charge

  • EWHPB operates the East-West Horizon Planter’s Scheme (EWHPS) in Sabah.
  • The charge alleges a violation of Clause 20.1 of the Trust Deed dated Dec 24, 2012, and the Second Supplemental Trust Deed dated Jan 23, 2015.
  • The company failed to deposit the specified funds into the Reserve Fund Trust Account, managed by trustee Pacific Trustee Bhd, between Jan 1, 2023, and March 31, 2023.
  • These funds were earmarked for the first-quarter payments of the monthly net return for the scheme’s investors.

    Legal Consequences

  • EWHPB faces charges under Section 45(2) of the Interest Schemes Act 2016.
  • Upon conviction, the company could face a maximum prison sentence of three years, a fine not exceeding RM500,000, or both.

    Court Proceedings

  • Jessie Tang pleaded not guilty to the charge before Judge Norina Zainol Abidin.
  • The court did not impose any bail on Jessie and agreed to combine this case with two others charged on Sept 12.

    Public Advisory

  • SSM advises the public to exercise caution and verify information with relevant enforcement agencies regarding investment schemes offered by companies.

    Stay tuned for more updates on this developing story.

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    Analysis

    This case highlights the importance of financial transparency and compliance with regulatory requirements in the investment industry. The charges against East West Horizon Plantation Bhd serve as a reminder to investors to conduct due diligence before participating in any investment schemes.

    Failure to adhere to trust agreements and deposit funds as required can result in legal consequences for companies and individuals involved. This case underscores the significance of regulatory oversight in protecting investors’ interests and maintaining the integrity of financial markets.

    As individuals, it is crucial to stay informed about the regulatory landscape and exercise caution when engaging in investment activities. By being vigilant and seeking verification from relevant authorities, investors can mitigate risks and make informed decisions to safeguard their financial well-being.

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