Immediately after Transmile Group’s accounting fraud over fictitious Trade Receivables/billings, another storm is brewing in another public listed company Welli MultiCorporation Bhd as the Malaysian Securities Commission (SC) queried the company over the authenticity of its trade receivables of RM113 million over a total trade receivables of Rm130 million as at 31 st December 2005
 

Append below the announcement by Welli dated 26/6/2007 extracted from Bursa Saham’s website:
 

“On behalf of the Board of Directors, we wish to inform that the Company has on 26 June 2007 received a letter from Securities Commission (”SC”) requiring Welli to withhold the issuance and public release of the Quarterly Reports for the quarters ended 31 December 2006 and 31 March 2007, and the Audited Financial Statements for the period ended 31 March 2007.

In view of the information received by the SC with regard to the authenticity and/or recoverability of trade receivables amounting to RM113million out of a total of RM135million as at 31 December 2005, SC is of the opinion that the same would have an impact on the price/value and market activities of Welli’s securities.

In the interest of ensuring only accurate financial information is disseminated to the investing public, it is therefore necessary for the Company to withhold the issuance and public release of the aforesaid quarterly reports and audited financial statements, until the issue is resolved to the satisfaction of the SC.”
 

Prior to the aforesaid event, we have a chain of other interesting announcements (extracted from Bursa Saham’s website)
 

14/6/2007 Announcement

 – Welli’s Board of Director received requisitions from the shareholders, namely Tan Kim Oh, Yoon Kok Chuan and Ke-Zan Nominees (Tempatan) Sdn Bhd, which represent a total of 10.17% of the equity interest in WELLI for the “Notice of removal of Messrs Deloitte KassimChan as Auditors of WELLI (”Proposed Removal of Auditors); and Notice of nomination for the appointment of Messrs Moore Stephens as new Auditors of  WELLI in place of Messrs Deloitte KassimChan for the financial period ended 31 March 2007”

26/6/07 Announcement

– Notice of Extraordinary General Meeting for  existing external auditor, Deloitte KassimChan be removed as Auditors of the Company with immediate effect and Moore Stephens be appointed as Auditors of the Company in place of Deloitte KassimChan in respect of the financial period ended 31 March 2007 and to hold office until the conclusion of the next Annual General Meeting at a remuneration to be determined by the Directors.

Early 2007 to End May 2007

- a series of changes in membership of boardroom, company secretaries, audit committee, sub-committee

Public announcement dated 28 November 2006 of  Fire in The Building Premises

- “ Welli Multi Corporation Berhad (”the Company”) regrets to inform that a fire broke out in the Administration Department of the Company on 25 November 2006. The estimated loss from the fire is approximately RM200,000.00 (Two Hundred Thousand) only. The cause of the fire is not known at this juncture .

As a result of the fire, the Company will be seeking the approval of the Bursa Malaysia Securities Berhad to defer the release of the quarterly results for the financial period ended 30 September 2006 until such time as the Company is able to compile the financial accounts of the Group.

In the Malaysian Stock Exchange we have so many public listed companies hence the ability  to specifically  query or identify ficititious/authenticity of trade receivables in Welli is a quite a remarkable feat. Any second quess?