Police will investigate the country's second-largest mobile-phone operator Technology Resources Industries Bhd over allegations of fake invoicing worth more than RM259 million, a police spokesman said Monday.

"We will investigate accordingly. We are now studying the police report that has been filed," the official told AFP .

In a statement to the stock exchange last Thursday, TRI chairman Mohamad Munir Abdul Majid said fake invoices issued in 1998 and 1999 were found by the company's new directors and reported to police.

Munir said the fake invoices — worth RM259.32 million — would have an impact on the finances of the company, which owns mobile phone operator Celcom (Malaysia) Bhd.

Misuse of funds

State-owned Telekom Malaysia Bhd in May took a controlling 31.25 interest in TRI, which was then controlled bu Tajudin Ramli.

After the departure of Tajudin and three other directors, the new board of Telekom commissioned a series of audits expected to be completed by the end of September.

Prime Minister Mahathir Mohamad has said TRI management was duty-bound to lodge the police report relating to misuse of funds in the company.

"It is compulsory for the management and board of directors to take action in relation to the misuse of funds," he said.

Tajudin lost control of TRI after he failed to repay RM1.4 billion in personal loans that was partly secured by his 13.2 percent interest in TRI. — AFP