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KUALA LUMPUR (June 24): PRG Holdings Bhd (KL:PRG) has appointed PKF Covenant Equity Consulting Sdn Bhd (PKF) to conduct an independent review of the transactions between the group’s construction unit Premier Construction International Sdn Bhd (PCI), and Premier De Muara Sdn Bhd (PDM). The appointment comes a day before the company is set to have its annual general meeting.
The review, to be conducted by PKF, will be overseen by PRG’s Audit and Risk Management Committee, with findings reported directly to the board.
“This structure ensures comprehensive reporting on governance and procedural matters, with full accountability to shareholders,” PRG’s board said in a statement on Wednesday.
According to the statement, PKF has a global network in 150 countries, and has strong audit and governance expertise.
“Their independence, technical expertise, and deep understanding of complex corporate and regulatory environments position them to conduct a thorough and objective review,” PRG noted.
The move follows PRG’s second-largest shareholder Datuk Sheah Kok Fah’s statement on June 9, seeking an independent review of the transactions at its AGM on June 25. Sheah had said that PDM is effectively controlled by PRG’s largest shareholder Datuk Ng Yan Cheng.
Just a day before, PRG had issued a statutory demand to PDM requiring settlement of RM64.24 million in outstanding payments owed to PCI within 21 days. A breakdown of the outstanding payments were not provided. This was after a part debt settlement deal was terminated.
Under a proposed settlement, PDM was to transfer 12 residential units in its Picasso Residence project, valued at RM13.37 million, to partially repay a RM37.17 million debt owed to PCI for work completed on the Picasso Residence project in Kuala Lumpur. The remaining balance would be negotiated separately.
PRG later terminated the agreement on May 19, citing the related party transaction issue and PDM’s failure to disclose a court judgement affecting its obligations.
At the time of writing on Wednesday, PRG shares were unchanged at nine sen, giving it a market capitalisation of RM44.1 million.
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