ISSUES OF MANAGEMENT

Internal Control Failure

Deliberatemisrepresentedthefinancialstatements-afalsefinancial
statementtoBursaMalaysiawithoutdetectedbycompany.

Failure Of Internal audit department

Reportthenetlosstotheshareholdersofthecompanyand
regulator.
SubmitthereportstoBursaMalaysiaforthefinancialyearended
April30,2007.
Reportthefalsifiedofinvoices,paymentsandembezzlementmade
byinternalexecutives

Subsidiaries Failure

2015,MTSBandMJC(Singapore)PteLtddefaultedRM47million
paymenttobondholders
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PEOPLE INCHARGE AND SUBSIDIARIES

KENNETH KOK HEN SEN @ KOK LIEW SEN (MMHB
Former Financial Controller and Executive Chairman

DATO DR HJ MOHD ADAM CHE HARUN (MMHB

Executive Chairman And Director)

At the material time, Mr KH was the personal

assistant to the Executive Chairman of MMHB

LOGO
MEMORY TECH SDN BHD
& MEGAN MEDIA HOLDING BHD
www.wondershare.com

MANAGEMENT ISSUE PROFILE

Mr KH (Former Executive Chairman)

RM 1,034.797 million reported in MMHB and its subsidiaries Financial

Statements for the year ended 30 April 2006

RM 230.365 million reported in MMHBs Quarterly Report on

Consolidated Results for the financial period ended 31 July 2006

RM 238.134 million reported in MMHBs Quarterly Report on

Consolidated Results for the financial period ended 31 October 2006

RM 306.15 million reported in MMHBs Quarterly Report on

Consolidated Results for the financial period ended 31 January
Mr MA (Former Executive Chairman)
RM 306.15 million reported in MMHBs Quarterly Report on Consolidated
Results for the financial period ended 31 January 2007

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COMP. & SUBSIDIARIES ISSUES PROFILE

Memory Tech
Sdn Bhd
(MTSB)

Megan Media
Bhd
(MMHB)

Substantial irregularities and its financial

position has been misstated
RM211mil deposit paid for 13 production lines
that could be fictitious, plus resulted in
receivables totaling RM334.3mil.
MTSBs assets could potentially fall short by
RM456mil.
Payments to all trading creditors were actually
made to other parties.
Reported an unaudited loss of RM1.3 billion for
its fiscal year ended April 2007 from a profit of
RM60 million the year before.
Defaulted on nearly RM900million loan.
Total equity stands in deficit to the tune of nearly
RM797 million.
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RECOMMENDATION
THEFT ACT INVESTIGATION

Checktheemployeesorexecutiveswhoareresponsibleforauthorizingor
reviewingorsubmittingthefinancialstatements.Strengths
Checkthebackgroundorpersonalprofileofthesuspectedfraudsterstosee
iftheyarefacinganypressuresthatwillaffecttheirworkperformance.
Performaspecialaudittoexaminethetrendsandchanges

PREVENTION AND DETECTION

Have A Good Corporate Governance:

Adheretotheaccountabilityandtransparencypractices.
Complywithrulesandregulations-Sarbanes-OxleyAct2002

Implement An Effective And Independent Internal Audit Department

Enhancetherolesandresponsibilitiesoftheauditcommittee
Conductriskassessmentjobrotation

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