Securities Commission Malaysia- The Court of Appeal today affirmed a 2017 Sessions Court conviction of former Executive Chairman and Director of Megan Media Holdings Berhad (Megan Media), Dato’ Dr. Hj. Mohd Adam bin Che Harun for furnishing false information to Bursa Malaysia in 2007.The panel judges comprising Datuk Seri Kamaludin Md. Said, Datuk Ravinthran Paramguru and Dato’ Indera Sofian bin Tan Sri Abd. Razak unanimously dismissed Dato’ Adam’s appeal and reinstated a jail sentence of 18 months and a fine of RM300,000.
Dato’ Adam, 76, was charged on 10 December 2007 for furnishing false information to Bursa Malaysia in Megan Media’s quarterly results for the financial period ended 31 January 2007. The false information relates to Megan Media’s revenue of RM306.15 million, of which more than 75% of the said revenue amounting to RM228 million were falsified.
The offence under section 122B (a)(bb) of the Securities Industries Act 1983 (SIA) read together with section 122(1) of the same Act, is punishable with a fine of not more than RM3 million or imprisonment term not exceeding ten years, or both.
On 17 May 2017, after a full trial, the Kuala Lumpur Sessions Court convicted and sentenced Dato’ Adam to 18 months Imprisonment and a fine of RM300,000. On 21 June 2019, the High Court affirmed the conviction by the Sessions Court, maintained the fine of RM300,000 but reduced the imprisonment term to six months.
Following the High Court’s decision in 2019, Dato’ Adam had filed an appeal against the conviction and sentence at the Court of Appeal. The SC had also appealed against the reduction of the jail sentence by the High Court.
The Court of Appeal today said that there was no merit in Dato’ Adam’s appeal and agreed with the SC’s contention that the submission of false information to Bursa Malaysia constitutes a heinous crime that attacks the integrity of the Malaysian securities market. The court further warned individuals holding high positions such as directors of public listed companies that giving false information in or relating to financial statements of the company will result in serious penal consequences. As such, circumstances such as advanced age and ill health would not necessarily result in non-custodial sentences.