Padini says MACC probe targets ‘external parties,’ not company itself

KUALA LUMPUR, April 25 — Padini Holdings Berhad has clarified that the recent freezing of its bank accounts by the Malaysian Anti-Corruption Commission (MACC) is related to an investigation involving its “external counterparties,” and not the company or its management.

In a statement today, the fashion retailer sought to reassure the market, saying that it is not aware of any wrongdoing on its part and believes the freezing order is a procedural step in the MACC’s ongoing probe.

The statement follows Padini’s official filing with Bursa Malaysia yesterday, which first confirmed that several of its bank accounts had been frozen under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).

Padini’s statement today specifies that the investigation targets certain external parties who are “not employees, officers, or part of the group’s management.”

“The company wishes to emphasise that, based on information currently available, we are not aware of any allegation or wrongdoing on our part and understand that the freezing order is a procedure taken in the course of the investigation,” Padini said.

The company also said it has pre-emptively commenced its own internal review to assess the circumstances and ensure its internal controls remain robust.

The company also reiterated its strict zero-tolerance policy against corruption and unlawful conduct.

Padini has engaged external legal counsel and is taking steps to unfreeze the affected accounts, reiterating that its day-to-day operations remain fully functional and uninterrupted, with business continuing as usual.

It previously said that the frozen accounts were not actively used for daily operations and that it has access to other banking facilities.

Padini also pledged to continue cooperating fully with the MACC and will provide further updates on any material developments.