SILVERBIRS SUE FORMER EXECUTIVES, AUDITORS

In 2012, Silver Bird Group Bhd and two of its wholly-owned subsidiaries Stanson

Marketing Sdn Bhd and Standard Confectionery Sdn Bhd have filed a suit against 10

parties including three former principal executives and its internal and external auditors.

The company is claiming RM125.03 million in damages from the three executives and

four private companies for causing financial irregularities towards Silver Bird and the

subsidiaries. As for the internal and external auditors, Silver Bird and its subsidiaries are

seeking a declaration that they have breached their duties and/or obligations towards

the company and are seeking damages.

In a rare move where a listed company has implicated its internal and external auditors,

Silver Bird listed the internal auditors — Audex Governance Sdn Bhd (Audex) and

Focus Internal Audit Solutions (FIAS) — as well as its external auditor Crowe Horwath

for breach of duties and negligence. In an announcement to Bursa Malaysia yesterday,

Silver Bird named Datuk Jackson Tan Han Kook, Ching Siew Cheong and Lai Poh Mei

as the key principal executives. Tan was the former group MD of Silver Bird. Tan was

the former group managing director of Silver Bird while Ching was the executive

director. Lai was the ex-general manager of accounts and finance of Silver Bird.

The two together with Lai were accused of abusing their positions to create fictitious

transactions, engineer false accounting records and commit fraud against Silver Bird for

the primary purpose of misappropriating funds. Silver Bird also named Triremis (M) Sdn

Bhd, Triremis Asia Sdn Bhd, Bill Davis & Associates Sdn Bhd and its distributor Asia

Food Link Sdn Bhd (AFL) as defendants in the suit. It seeks a declaration that the

purported sales of sweetened creamers and purchase of assets for the operations from

This study source was downloaded by 100000863026729 from CourseHero.com on 03-21-2023 20:32:42 GMT -05:00

https://www.coursehero.com/file/154069469/AUDIT-CASE-OF-SILVERBIRD-COMPANYdocx/
 the four companies were fictitious and non-existent.

Additionally, Silver Bird is seeking a declaration that these parties along with the three

key officials had conspired to defraud the group in reckless disregard of the interests

and/or to injure the interests of SBGB. The suit has been fixed for case management at

the Kuala Lumpur High Court on Sept 3, 2012. Two days ago, former director Ching

served a writ of summons against Silver Bird seeking compensation for wrongful

termination of employment and losses he incurred arising from the mismanagement of

the board which resulted in the company being classified as a PN17 affected issuer.

Silver Bird hogged the limelight in February this year when the external auditors Crowe

Horwath refused to prove a basis for an audit opinion to the group’s results for the

financial year ended Oct 31, 2011. Subsequently, the top management were relieved of

their positions and the board initiated a forensic audit.

This study source was downloaded by 100000863026729 from CourseHero.com on 03-21-2023 20:32:42 GMT -05:00

https://www.coursehero.com/file/154069469/AUDIT-CASE-OF-SILVERBIRD-COMPANYdocx/
Powered by TCPDF (www.tcpdf.org)