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TAWAU: Allegations of corporate misconduct relating to a RM6 million payment and a “Temporary Resolution” featured prominently in proceedings at the Tawau High Court today as the cross-examination of Plaintiff Witness 1, Chong Tzu Khen, continued before defence counsel Andy Tay and Judicial Commissioner Steve Ritikos.
During the session, Chong maintained that the Temporary Resolution was “dubious” and suggested that the previous management had exceeded its authority in approving the payment.
Defence counsel, however, put to the witness that official announcements issued by Bahvest Resources Berhad as well as board meeting minutes indicated that the resolution and payment had been collectively ratified by the board of directors and disclosed publicly to Bursa Malaysia.
Chong confirmed that no official finding of illegality or criminal charges had been issued by any regulatory or enforcement authority.
He also agreed that a newspaper article cited in his witness statement was not an official police report.
In addition, he acknowledged that Datuk Lo Fui Ming and Lo Teck Yong were absent or had abstained from the relevant board decisions, and that the RM6 million payment was made to a corporate entity rather than to individuals personally.
Further questioning focused on whether the allegations raised by Chong were based on personal knowledge or interpretation.
While he maintained that the actions taken reflected weak governance and exceeded the intended mandate, he agreed that he did not personally participate in negotiations between Bahvest/WRSB and Southsea Gold Sdn Bhd, and that no official police report had been produced before the court to support certain assertions.
Defence counsel also suggested that the Temporary Resolution and payment were formally approved, transparently disclosed, and fell within the authority of the board of directors, while putting to the witness that parts of the allegations were based on interpretation rather than documentary proof.
Proceedings were adjourned and will resume at 8.30am tomorrow.
