Dyna-Mac Holdings reports on suspected S$1m misappropriation by subsidiary's ex-staff

MAINBOARD-LISTED Dyna-Mac Holdings Ltd on Sunday said it has lodged a police report in relation to suspected criminal conduct involving misappropriation of funds amounting about S$1 million by an ex-employee of a subsidiary.

"Upon the discovery of the misappropriation, the board, together with the audit committee, had taken immediate steps to (i) review the internal controls of the affected department of the subsidiary; and (ii) investigate any further incident of misappropriation.

"Based on the outcome of the investigations conducted, no other incident of misappropriation has been discovered," the group said in a filing to the Singapore Exchange.

It added that the subsidiary is now working with its insurance firm on claiming compensation, while the board is concurrently seeking advice on the available courses of action to recover the misappropriated funds.

Further updates will be made as and when available.

The group added that if it is unable to fully or substantially recover the misappropriated fund, it expects the misappropriation to have an impact on the financial statements and performance of the subsidiary for the financial year ending Dec 31, 2016. "Notwithstanding, the board does not expect it to have significant impact on the normal operations of the group."