KUALA LUMPUR (Jan 19): The Court of Appeal today unanimously dismissed the appeal by two former independent directors of Transmile Group Bhd who were found guilty of having knowingly authorised the furnishing of a misleading statement to the stock exchange, the Securities Commission Malaysia (SC) said today.

This would mean the sentence of one-year imprisonment and a fine of RM300,000 against the directors, who were members of its Audit Committee, would be upheld.

The high profile scandal which took place back in 2007, involved the company’s officials making a misleading statement relating to the airfreight company’s revenue in its unaudited consolidated results for the financial year ended Dec 31, 2006.

The misleading statement was with respect to the unaudited revenue figures which were reported to Bursa Malaysia for both the fourth quarter of 2006 as well as the cumulative period for 2006.

Shukri Sheikh Abdul Tawab, 53, and Jimmy Chin Keem Feung, 52, were both found guilty under Section 122B (b)(bb) of the Securities Industry Act 1983 for knowingly authorizing the furnishing of a misleading statement to Bursa Malaysia in Transmile Group’s quarterly report on its unaudited consolidated results for the financial year ended Dec 31, 2006.

In 2011, the Sessions Court convicted and sentenced the two to one year in jail and a fine of RM300,000. In 2015, the High Court affirmed their conviction and sentence imposed by the Sessions Court.

Today, Justice Datuk Ahmadi Haji Nawawi delivered the decision of the Court of Appeal, stating that there was no merit in the appeal and that the sentence imposed by the Sessions Court judge was commensurate with the offence.