<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>NEL seeks to fire board and auditor
</TR><!-- headline one : end --><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Ananya Roy
</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->TECH firm NEL Group, which is embroiled in allegations of dodgy deals, will attempt to sack its board and auditor KPMG next month.
An extraordinary general meeting (EGM) on Feb 26 will ask shareholders to vote on the sacking resolutions, the latest step in an unfolding drama centred on allegedly false transactions.
Two shareholders had asked for the removals last year. The meeting will seek the removal of six board members.
They are executive director and chief executive Choong Choo Leong, finance and corporate director Lee Jyh Kiong, Mr Law Chor Soon, the executive director of the wholly owned unit Nucleus Electronics Hong Kong, non-executive directors Ameezan Jamal and Chieng Siong Kuong and director Abdul Halim Ihsan.
The removal of Mr Ihsan is a formality as he resigned last month.
Shareholders had called for the removal of the board following a report by KPMG alleging that NEL was involved in 'round-tripping' transactions carried out by semiconductor firm Advance Modules.
KPMG was also appointed special auditors to Advance Modules.
A KMPG report released last November alleged that Advance Modules' sales of US$14.4 million (S$21.7 million) was fabricated to meet an internal profit target for the 2005 financial year.
Disagreements between NEL and KPMG allegedly stemmed from the auditor's role as a whistle-blower.
NEL did not want to let KPMG continue with its investigation, stating that there could be a conflict of interest as KPMG was also probing Advance's sales records as a special auditor.
NEL suspended KPMG as its statutory auditors on Dec 19.
The questionable deals at Advance Modules, a Malaysian firm listed in Singapore, involve a sale of memory modules to a Hong Kong-incorporated firm, Long Gain Technology.
The deal accounted for 41 per cent of the group's total revenue for the 2005 financial year.
KPMG found that the sales were 'not legitimate transactions' and were likely done to attain a profit target of RM17 million (S$7.1 million) for the year.
Round-trip transactions involve a company selling an unused asset to another company and at the same time agreeing to buy back similar assets at about the same price. It is done to show a false, inflated bottom line by companies that may fail to meet revenue targets.
</TR><!-- headline one : end --><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Ananya Roy
</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->TECH firm NEL Group, which is embroiled in allegations of dodgy deals, will attempt to sack its board and auditor KPMG next month.
An extraordinary general meeting (EGM) on Feb 26 will ask shareholders to vote on the sacking resolutions, the latest step in an unfolding drama centred on allegedly false transactions.
Two shareholders had asked for the removals last year. The meeting will seek the removal of six board members.
They are executive director and chief executive Choong Choo Leong, finance and corporate director Lee Jyh Kiong, Mr Law Chor Soon, the executive director of the wholly owned unit Nucleus Electronics Hong Kong, non-executive directors Ameezan Jamal and Chieng Siong Kuong and director Abdul Halim Ihsan.
The removal of Mr Ihsan is a formality as he resigned last month.
Shareholders had called for the removal of the board following a report by KPMG alleging that NEL was involved in 'round-tripping' transactions carried out by semiconductor firm Advance Modules.
KPMG was also appointed special auditors to Advance Modules.
A KMPG report released last November alleged that Advance Modules' sales of US$14.4 million (S$21.7 million) was fabricated to meet an internal profit target for the 2005 financial year.
Disagreements between NEL and KPMG allegedly stemmed from the auditor's role as a whistle-blower.
NEL did not want to let KPMG continue with its investigation, stating that there could be a conflict of interest as KPMG was also probing Advance's sales records as a special auditor.
NEL suspended KPMG as its statutory auditors on Dec 19.
The questionable deals at Advance Modules, a Malaysian firm listed in Singapore, involve a sale of memory modules to a Hong Kong-incorporated firm, Long Gain Technology.
The deal accounted for 41 per cent of the group's total revenue for the 2005 financial year.
KPMG found that the sales were 'not legitimate transactions' and were likely done to attain a profit target of RM17 million (S$7.1 million) for the year.
Round-trip transactions involve a company selling an unused asset to another company and at the same time agreeing to buy back similar assets at about the same price. It is done to show a false, inflated bottom line by companies that may fail to meet revenue targets.
