Koda says S$263,000 misappropriated at its unit, files police report

FURNITURE maker Koda has lodged a police report on the alleged misappropriation of funds amounting to around S$263,000 by a former employee of wholly-owned subsidiary Commune Lifestyle. 

The misappropriated fund represents 0.4 per cent of the group’s net tangible assets as at June 30, based on its latest audited financial statements. 

In a bourse filing on Wednesday (Nov 1), Koda said the employee, who was the administrator of the subsidiary’s payment gateway system, had made unauthorised changes to the system to direct monies received from credit card and contactless payment transactions into his own personal account. 

Since its discovery, Koda said that it has suspended the use of the payment gateway system for its retail business in Singapore, with sales proceeds now collected by credit card machines. It has also imposed access restriction to the systems while it rectifies the lapses and improves the related system security. 

 An internal check did not reveal any other lapses in Commune Lifestyle’s other payment systems, it added.

“In view of the case of fraud, the group (will) conduct a technical review on the current issue with root cause analysis, and an extended review on the IT governance, risk and compliance analysis for all the integrated payment gateways and systems,” noted Koda. 

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Shareholders will be updated when there are material developments, it said. In the meantime, the group will seek legal advice and pursue necessary legal recourse.