The Anti-Corruption Agency (ACA) and police were today urged to expedite investigations into a government-founded health agency for alleged criminal breach of trust (CBT) and corporate fraud amounting to hundreds of millions.

The Consumers Association of Subang and Shah Alam (Cassa) expressed disappointment that there was no progress regarding their reports against the Foreign Workers' Medical Examination Monitoring Agency (Fomema) filed last year.

According to Cassa president Dr Jacob George, the amount involved in the alleged CBT amounted to RM300 million and was committed by former major shareholders of Fomema.

"...It is pertinent, that in public interest, in support of corporate governance, accountability and transparency initiated by premier Abdullah Ahmad Badawi's administration - the authorities should provide adequate answers to the questions here raised by Cassa," he said at a press conference.

He added that a report was also lodged with the Securities Commission, but the association has yet to be notified about its progress.

In 1997, the government granted Fomema the exclusive right to conduct a systematic and standardised medical examination for foreign workers here.

The privatisation plan faced objections from the medical profession since the immigration department would only accept medical examination of foreign workers certified by Fomema.

The agency charged RM185 per person to examine female workers and RM175 for male workers.

Director in the dark

According to a copy of the police report, the major shareholder of Fomema in 1997 was Anjuran Dinamik Sdn Bhd (ADSB).

In February 2000, the entire paid-up capital of ADSB was sold to Pantai Support Services Sdn Bhd - a subsidiary of Pantai Holdings Berhad - for RM124 million.

It is alleged that ADSB was worth much more than RM124 and that the excess money was siphoned off to two other companies.

The report stated that when the announcement of the deal was made, one of the ADSB directors Dr Awang Had Salleh discovered that Pantai Support was also simultaneously proposing to purchase two other companies linked to ADSB for RM92 million and RM88 million respectively.

The report claimed that the two companies were 'RM2' companies and linked to several high-placed individuals in Fomema. Awang reportedly had been kept in the dark over the existence of these companies. .

He then sought clarification from his counterparts, but was allegedly told that the inclusion of the companies were for tax purposes and due to the insistence of Pantai Support.

Awang then accused the top officials in Fomena of "serious financial mismanagement" and lodged a police report .

He later filed a RM300 million suit against nine companies, including Fomema, and 11 individuals with the Kuala Lumpur High Court last December. The case is still pending.

Official protest

Meanwhile, George also highlighted another questionable management practice when Fomena was owned by ADSB.

He said Cassa received complaints from laboratories that they were paid a flat rate of RM45, a reduction of about RM20-30 from the fixed medical fee rate.

George said the Economic Planning Unit under the Prime Minister's Department should clarify the matter since the department approved the rate upon advice from Fomema.

He stressed that all the allegations were against the company's former shareholders and not its current ones.

He added that Cassa will file an official protest with the Prime Minister's Department regarding the matter next week.