TI wants justice delivered in Transmile Case (Malaysia Kini)
Jun 22, 2007

Transparency International (TI) Malaysia has called for a full investigation on Transmile Group Berhad concerning allegations that it may have overstated its consolidated revenues for the past two years.

TI Malaysia president Dr Ramon Navaratnam said that appropriate measures must be taken if corporate fault and corruption are proven.

"The culprits must be held accountable for their misdeeds in deceiving the public in order to gain financially by any improper means," he said in a statement today.

TI Malaysia, he added, takes a very serious view of the findings of the Moores Rowland Risk Management's (MRRM) in its final report on Transmile.

"The MRRM reports show that Transmile overstated their revenue by RM95 million in financial year 2004, RM194 million in financial year 2005 and RM333 million in financial year 2006," he said, adding that RM341 million in its property, plant equipment account was not supported by documentations.

"This would appear be a flagrant violation of the principles of good governance, transparency, integrity and accountability which TI advocates in government and businesses."

Ramon, who opined that the level of corporate integrity in the private sector still needs improvement, called for several measures to be taken by the authorities and corporate boards.

Strengthen commitment 

Among them are, measures to protect whistleblowers, and more deterrent punishment including imprisonment of corporate leaders for corporate frauds.

"The private sector must review, reform and strengthen its commitment to promote good governance and accountability on a more substantive manner before Malaysia's future prospects of economic prosperity and political stability is affected," said Ramon.

"The world is watching us on how this MRRM report will be handled and TI hopes Malaysia will deliver justice well," he added.

Transmile is a cargo carrier whose shareholders include Malaysia's richest man Robert Kuok.

It provides air cargo and international freight services, chartering, aircraft leasing and general freight services.

MRRM findings may result in Transmile having to re-state its 2005 and 2006 earnings in full provisions have to be made.

Transmile's 2006 pretax profit of RM207 million could be reduced to a loss of RM126 million, while the 2005 pretax profit of RM120 million could be cut to a RM77 million loss.