SC FINES DUFU’S EXECUTIVE DIRECTORS FOR REMITTING MILLIONS OVERSEAS WITHOUT BOARD AUTHORIZATION

KUALA LUMPUR – Securities Commission Malaysia (SC) has reprimanded and imposed penalties on two executive directors of Dufu Technology Corp Bhd for causing wrongful loss to the company.

Former executive director and chief executive officer of Dufu Yong Poh Yow was found to have allegedly made remittances totalling US$1,010,041 (RM4.1 million) to foreign parties in the US between January 2013 and October 2014 without authorisation from Dufu’s Board.

The SC, in a statement today, said the monies were then allegedly used to purchase several assets which were registered under his own name, and this is a breach of section 317A(1) of the Capital Markets and Services Act (CMSA) 2007.

It said Yong was reprimanded and fined RM200,000.

Former executive director and chief financial officer of Dufu Lee Hui Ta, also known as Li Hui Ta, was reprimanded and fined RM150,000 for abetting Yong by allegedly approving payment vouchers for the said unauthorised remittances.

Lee is currently the executive chairman of Dufu.

Although a breach of section 317A(1) of the CMSA carries a minimum jail term of two years to a maximum of 10 years and a fine not exceeding RM10 million upon conviction, the SC said it imposed administrative sanctions on both Lee and Yong after taking into consideration that Yong had fully repaid the amount involved to Dufu. — Bernama

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