Jawala says freeze on subsidiary's bank account with CIMB mostly lifted

MALAYSIA timber firm Jawala Inc on Tuesday said that it has been informed by CIMB Bank that its subsidiary Jawala Plantation Industries' (JPI) current account with CIMB may now be allowed to be operated for transactions without any limits, save for a sum of about RM4.4 million (S$1.4 million) in the current account, and a sum of about RM11 million in JPI's fixed deposit account, which are to remain frozen.

JPI's current account and fixed deposit account were initially frozen by CIMB as a result of a freezing order issued by the Malaysian Anti-Corruption Commission (MACC) on Nov 5, 2018.

In a filing to the Singapore Exchange, Jawala said: "To the best of the company's knowledge and beliefs, the investigation by the MACC is ongoing and the company will continue to cooperate and assist in the investigation."

It added that it has not received any formal notification from the MACC or any other regulatory authority with regard to the suspension of JPI's bank accounts with CIMB and Public Bank Berhad.

There were also no material disruptions to JPI's operations since the suspension of the bank accounts. The directors are also not aware of any investigation or proceedings pending or threatened against JPI, its directors and Jawala's directors.