Malaysia's securities watchdog said Friday it raided the offices of major cargo carrier Transmile earlier this week.

A spokeswoman for the Securities Commision declined to say why the Tuesday raid was conducted, although she said it was done in investors' interests.

"I can only confirm that a raid was conducted but I cannot elaborate further," the spokeswoman said.

She declined to say if the raid was connected to accounting irregularities reported by the company this month.

Transmile's executive director Khiudin Mohd Bidin also declined to comment on the raid.

Transmile, which has a swathe of prominent investors, said earlier this month it had failed to meet the deadline to submit audited financial statements for 2006.

The announcement shocked investors, and Transmile shares have since fallen sharply, losing 32 percent from 13.00 ringgit before its announcement, to 8.85 ringgit in late trade Friday.

Audit not finalised

Transmile's shareholders include Malaysia's richest person, Robert Kuok, JP Morgan, Goldman Sachs, the Singapore government and national postal company Pos Malaysia.

Its chairman is former MCA chief and transport minister Ling Leong Sik.

The cargo firm told the Malaysian bourse on May 7 that the audit could not be finalised due to the absence of "relevant supporting documentation from the management on certain transactions".

The transactions concerned its trade receivables and related sales, and additions to its property, plant and equipment assets.

The company also appointed a risk management firm to conduct a special audit and said it it would try to finalise its financial statements for its annual shareholders meeting in the second half of June.

Many analysts have cut their recommendations on Transmile and blamed the lack of communication from the firm's management for the downgrades.