PETALING JAYA: XIN Synergy Group Bhd’s wholly owned subsidiary Total IPCO Sdn Bhd has lodged a second police report against three former directors following an independent review that uncovered “serious irregularities” in moneylending activities undertaken during their tenure.
The three former directors are Chong Wei Chuan, Chong Wei Liang and Khoo Yik Chou, who were directors of XIN Synergy and Total IPCO during the period under review.
XIN Synergy said in a Bursa Malaysia filing that the second police report followed a review of Total IPCO’s moneylending activities and related matters between May 1, 2021 and Oct 10, 2023.
Based on the findings of the independent reviewer, the moneylending activities undertaken during the former directors’ tenure were “tainted with serious irregularities”, including loans that had allegedly been approved and disbursed to purported borrowers in breach of Total IPCO’s standard operating procedures and applicable statutory requirements.
The company said further investigations had also uncovered evidence suggesting that the transactions gave rise to serious regulatory and legal concerns.
The latest development follows a police report lodged by Total IPCO in August last year after the company discovered irregularities in its moneylending process during the former directors’ tenure.
In its Aug 25, 2025 announcement, XIN Synergy said the irregularities identified included improper risk assessments in approving loans, over-reliance on recommendations without independent validation, and undisclosed conflicts of interest involving related-party borrowers.
Other issues identified included suspicious loan drawdowns and interconnected repayment activities, concentration of loan approvals during periods of market volatility, and non-compliance with internal procedures and certain provisions of the Moneylenders Act 1951.
Following the initial findings, XIN Synergy appointed NEK & Associates as independent reviewer to conduct a comprehensive review of Total IPCO’s moneylending activities and related matters during the period.
XIN Synergy said the latest police report and the measures taken were necessary to protect the interests of the company, its shareholders and stakeholders, as well as to uphold accountability and corporate governance standards.
The group said the lodging of the second police report has no immediate material financial impact on the group for the financial year ending March 31, 2027.
The company said it would make further announcements to Bursa Malaysia Securities as and when there are material developments in relation to the matter.
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