THE corporate governance crisis engulfing NexG Bhd has entered a new phase after Malaysia Corruption Watch (MCW) lodged a police report to demand full-scale probe into RM303.7 mil worth of allegedly suspicious transactions when on-the-run businessman Victor Chin Boon Long served as its chief operating officer (COO).
The watchdog is seeking accountability not only from Chin – who is believed to have left the country amid on-going enforcement investigations – but also from NexG’s (formerly Datasonic Group Bhd) deputy executive chairman and CEO Datuk Abu Hanifah Noordin.
“The principle of corporate accountability is clear. Responsibility doesn’t rest solely on the individual under investigation but extends to the entire corporate leadership structure,” MCW president Jais Abdul Karim told the media after filing a report at the Kajang district police headquarters (IPD) on Friday (April 17).
“As the company’s top executive, Abu Hanifah shouldn’t be using Chin’s absence as grounds for withholding explanations from shareholders and investors.”
The transactions in question span the period from November 2024 to September 2025 and include loans channelled through MMR Capital, investments in Classita Holdings Bhd (formerly Caely Holdings Bhd) and the acquisition of shares in MMAG Holdings Bhd from related parties – all of which MCW described as raising red flags around governance standards and potential conflicts of interest.
Compounding the concern is the fact that these transactions took place during a period when NexG was recording substantial fair value losses and net losses, raising questions about the commercial rationale behind the spending decisions and whether adequate internal controls were in place.
As it is, NexG’s own share price is languishing near its all-time low of 23.5 sen. On Friday (April 17), the Main Market-listed security-based ICT solutions outfit closed unchanged at 24.5 sen with 3.62 million shares traded, thus valuing the company at RM909 mil.
The NexG affair has become one of the most closely watched corporate controversies in Malaysia this year. It has drawn in multiple enforcement agencies, senior political figures and ignited a public debate about the adequacy of capital market oversight.
Amid the “Corporate Mafia” brouhaha, Human Resources Minister Datuk Seri R. Ramanan weighed in publicly, labelling Chin a “corporate devil” and describing the businessman’s allegations against him as a deliberate attempt to divert attention from authorities’ ongoing probes.
The Inspector-General of Police (IGP) Datuk Seri Mohd Khalid Ismail has confirmed that Chin is overseas with investigations under the Anti-Money Laundering Act (AMLA) still active.
Working alongside the Securities Commission Malaysia (SC), the police had earlier raided several properties linked to Chin in Kemensah and Sungai Long, seizing luxury vehicles, watches, jewellery, cash in multiple currencies and related documents.
A particularly contentious element involves a share disposal by Chin’s wife, Chan Swee Ying, who reportedly sold a 9.53% stake in MMAG Holdings – some 220 million shares valued at RM88.22 mil – to NexG Bhd itself, thus raising questions about related-party transaction (RPT) protocols and board-level oversight.
MCW is now urging the police, SC, Bank Negara Malaysia (BNM) and the Malaysian Anti-Corruption Commission (MACC) to coordinate their investigations more closely, cautioning that any attempt to shield individuals through corporate structures or governance loopholes must be met with decisive enforcement action.
“This is no longer an internal corporate dispute,” contended Jais. “It touches on the integrity of the corporate sector, affects national image, investor confidence and public trust in our enforcement institutions.”
For investors and market participants, the NexG saga raises broader questions about the robustness of governance safeguards at Bursa Malaysia-listed entities, particularly those with complex ownership structures and frequent related-party dealings.
With enforcement agencies now actively investigating and a growing chorus of calls for transparency, all eyes are on whether NexG’s leadership will step up – or whether the scandal will deepen further. – Focus Malaysia
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