Perak Corp denies allegations of fraud and non-disclosure of assets

KUALA LUMPUR: Practice Note 17 company Perak Corp Bhd has denied allegations of fraud and non-disclosure of assets lodged via a police report by Paramount Grace Sdn Bhd's director, Paramjit Singh Gurbachan Singh.

According to a business weeklyParamount Grace is a creditor under the Perak Corp's scheme of arrangement approved by creditors on April 19, 2021.

Paramjit's report came after Perak Corp announced on August 9, 2023 that it had entered into a sale and purchase agreement with Kim Poh Sitt Tat Feedmill Sdn Bhd to dispose of 110 acres leasehold land in Kampar, Perak for RM5.5 million cash.

Paramjit alleged fraud in relation to assets Perak Corp claimed to own under its creditors' scheme of arrangements, stating that there is a strong possibility that Perak Corp owns more assets than stated in its creditors scheme.

In a voluntary clarification filing with Bursa Malaysia Securities in response to the report in the business weekly, Perak Corp pointed out that all properties belonging to the company, which include the 110 acres leasehold agricultural land in Kampar, were properly included in the explanatory statement dated March 26, 2021 for the proposed scheme of arrangement based on the management accounts of Perak Corp as at June 30, 2020.

"The allegations by Paramjit are malicious and unsubstantiated, " the company said on behalf of the board of directors.

Perak Corp emphasised that the scheme of arrangement for Perak Corp and PCB Development Sdn Bhd (In Creditors' Voluntary Liquidation) were sanctioned by the High Court of Malaya on May 7, 2021 and is binding on all the scheme creditors respectively. 

Perak Corp has lodged a police report in relation to the allegations made by Paramjit.

"At this juncture, the company is seeking legal advice over this malicious allegations and inaccurate statements by Paramjit and will make the necessary announcements in due course," the company said.

Perak Corp reported a net profit of RM276,000 for the six-month period ended June 30, 2023, compared with a net loss of RM2.29 million for the same period in 2022.

On September 1, 2023 the company submitted an application to Bursa Malaysia Securities for a further extension of time of 10 months up to June 8, 2024 to submit the company's regularisation plan to the relevant regulatory authorities.

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