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Jawala says subsidiary's bank accounts frozen by authorities
MALAYSIAN timber company Jawala said on Wednesday night that an officer-in-charge at CIMB Bank had verbally informed the group on Monday that its subsidiary, Jawala Plantation Industries (JPI), has had its main bank accounts suspended by the authorities.
Jawala, which was listed on the Catalist board via an initial public offering in June, said it is in the midst of seeking clarification on the suspension of JPI's bank accounts.
"As these bank accounts are vital for the group's daily operations, the company will also be seeking approval from the relevant authorities to authorise the company to make payments to amongst others, contractors, the Sabah government and employees so that the group's operations would not be affected," Jawala said in a filing on Wednesday.
To date, neither the company nor the directors of the company have received any verbal or formal notification directly from the authorities regarding the suspension, Jawala said. They are also not aware of any stop-work orders on JPI, or of any investigation or proceedings pending or threatened against JPI.
The company is currently seeking independent legal advice.
Jawala shares last changed hands at S$0.178 on Oct 18.