Several weaknesses in enforcement carried out by the Companies Commission of Malaysia (CMM) have been listed in the Auditor-General's Report 2011, including failure to go after directors who owed more than half a million ringgit in compound fines.
An example listed in the report is that of a director who registered a whopping 683 companies and chalked up 135 compounds for a total of RM640,000 in fines, but no action was taken.
"The audit found that CCM is late in taking action to collect its compounds after 44 days and also late in referring them to the prosecution department for further action," the report says.
A company that is issued with a compound must pay up within 14 days, or it should be referred for further action within the subsequent 30 days.
The report also listed out four other similar cases where company directors had between 85 and 135 compound fines issued against them, amounting to between RM640,000 and RM490,000 in fines.
Despite the huge sum of compound fines due, the report said, these directors were still actively registering new companies, and without any hurdle.
It also noted problems in CCM's compound system, where multiple, overlapping compounds were automatically issued for the same offence.
"This weakness accounts for 346,546 or 49.9 percent of the total compounds (issued since 2007), where the actual value cannot be determined," the report says.
Further to this, the report finds that the numbers of cases referred to the prosecution department of CCM, in particular to its Kuala Lumpur branch, were very low.
The cases referred to the KL branch, it said, came to only 1.5 percent or RM8.59 million worth in compound fines, out of a total of RM554.94 million worth of uncollected compounds.
The CCM in the recent months has been rigorously investigating Suaram in a bid to prosecute the human rights group.
Domestic Trade, Cooperatives and Consumerism Minister Ismail Sabri Yaakob had on Sept 18 declared that CCM aimed to have Suaramcharged within two days for its "confusing accounts".
However, the Attorney-General's Chambers returned the investigation papers to CCM a day later, citing that they were incomplete.
On Oct 11, Ismail Sabri had revealed that the investigation papers had been resubmitted to the Attorney-General's Chambers.
Suaram has denied any wrong-doing and has claimed that it was being targeted for filing a corruption case in France on Malaysia's purchase of two Scorpene submarines from that country.
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