NexG urges cops to review 16 accounts frozen since November

 The company, which supplies Malaysian passport booklets and identity cards, says it’s unaware of any wrongdoing and has not received clarification from the authorities.

NexG Bhd, formerly known as Datasonic Group Bhd, saw the departure of several directors and senior management staff members last year, including its chief operating officer and chief strategy officer.

PETALING JAYA:

 NexG Bhd has urged the police to review the freezing of 16 of the company’s bank accounts since November, saying it is unaware of any wrongdoing and has not received a formal order on the matter.

The company, formerly known as Datasonic Group Bhd, said it only found out about the freeze in mid-November when certain transactions could not proceed, including the payment of salaries and statutory obligations.

It said the company’s board of directors had “actively” sought clarification from the authorities but had yet to be informed of any findings involving alleged money laundering activities.

“The company has submitted multiple formal appeals to the relevant authorities requesting either the full unfreezing of the accounts, or at the minimum, a structured and conditional operational release to enable the company to meet its essential business obligations.

“It is important to clarify that the group maintains sufficient funds within the affected bank accounts to meet its operational obligations. However, due to the freezing order, the company is unable to access or utilise these funds for business purposes,” it said in a statement.

NexG, which supplies Malaysian passport booklets and identity cards, said this was expected to have financial and operational implications on the company, including lawsuits and claims for breach of contract.

It added that it had RM61 million in fixed deposit accounts that could not be transferred to current accounts due to the freeze order.

“In the interim, the company is making its best efforts to utilise collections generated from its manufacturing division through its other remaining active operating bank accounts.

“NexG is also currently seeking legal advice on the appropriate course of action available to the company in relation to the matter,” it said.

NexG executive director Ng Keok Chai reiterated that the company was willing to cooperate with the authorities, but expressed hope that a fair resolution could be achieved so the firm could operate as usual.

The troubled company saw the departure of several directors and senior management staff members last year, including its chief operating officer and chief strategy officer.

This came after NexG secured four major public sector contracts in 2025 worth more than RM2.5 billion in total.

In October, the company denied speculation that it was under investigation by the Malaysian Anti-Corruption Commission.

More recently, suspended NexG executive chairman and CEO Abu Hanifah Noordin slammed the company over his suspension, claiming it was linked to his rejection of a proposal to subcontract certain technological components for a government project to HeiTech Padu Bhd.

Hanifah said he terminated the contracts of two of the firm’s external advisers on March 4 before being suspended by NexG’s board of directors the following day. He insisted he was protecting the company.

Hanifah also said he had initiated legal action to “safeguard the interests of NexG, its shareholders and the integrity of its government contracts”. - FMT