Chin Seak Huat ceased to be a substantial shareholder in beleaguered ornamental fish breeder Xian Leng Holdings Bhd, after selling 1.45 million shares or two percent equity interest in the company.

It is noteworthy that Chin was instrumental in the special audit on Xian Leng by PricewaterhouseCoopers Advisory Services (PwC) last year.

Thus, implicating Chua Bah Bee @ Chua Chong Seng ( left ) - the brother of MCA president Chua Soi Lek - in the siphoning out of RM85.7 million, which had been set aside to build ponds at Xian Leng.   

When contacted, Chin merely said, “It is difficult; I don’t have much time... I still have a little more shareholding,” he said, clearly reluctant to divulge more than necessary.

Xian Leng, after all, has turned out to be a political minefield with many parties uneasy with the findings of PwC.    

To recap, PwC was engaged in October 2011 by Xian Leng to investigate alleged irregularities in capital expenditure incurred by its wholly-owned units - Xian Leng Trading Sdn Bhd and Xian Leng Acquatic (Kluang) Sdn Bhd - from Feb 1, 2001 to Jan 31, 2008.

As part of the plan to build ponds, cash cheques from Xian Leng were made out to Inco Licensed Money Changer, whereas corresponding payment vouchers were made out by Xian Leng to four contractors.

RM37.7mil could not be accounted for

Chua, the report by PwC says, could not account for RM37.7 million of the cash paid to Inco Licensed Money Changer and withdrawn by him.

Transactions with Inco Licensed Money Changer were a related party transaction and should have been disclosed, but were not.

PwC said that the invoices by the four contractors stated the work was done in broad terms, without any specifics.

Furthermore, three of the four contractors were not registered businesses when they issued invoices to Xian Leng.

All the four contractors were also sole proprietors.      

The award of the work to the four contractors was without tender or a competitive bidding process as well.

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