04-418 ASIC obtains orders to investigate affairs of Australian-based Malaysian bank
Tuesday 21 December 2004
The Australian Securities and Investments Commission (ASIC) has obtained orders in the Supreme Court of Victoria appointing Mr Robert Michael Scales of Ernst and Young as liquidator to the Australian shareholders of Commercial IBT and its subsidiary, Commercial IBT Australia Pty Ltd (Commercial IBT Australia).
The shareholders of Commercial IBT include RG Investments Management Pty Ltd (RGIM), Royal Corporation Pty Ltd (Royal Corporation), Value Fund International Pty Ltd (Value Fund) and Lulumar Pty Ltd (Lulumar).
ASIC sought to have a liquidator appointed to further investigate the affairs of Commercial IBT and Commercial IBT Australia so that their true financial position, and nature of their business activities, can be substantiated.
Mr Scales was previously appointed provisional liquidator of these companies by the Supreme Court of Victoria on 12 November 2004.
ASIC alleges that:
- RGIM, Value Fund, Royal Corporation, Lulumar, and Commercial IBT Australia, their directors, officers or employees breached various provisions of the Corporations Act 2001 during the period 1 July 2000 to 18 October 2004 and thereafter;
- the actions of Commercial IBT, conducted through its directors and shareholders in the period between the filing and hearing of the Interlocutory Process, were intended to avoid the scrutiny of ASIC over their financial affairs;
- Dr Ong, Director of Commercial IBT, RGIM and Value Fund International, has endeavoured to cloak the activities of CIBT and its shareholders from proper scrutiny; and
- the actions of Commercial IBT and its shareholders may possibly have been designed to, or have the result of, preventing any of the Australian Taxation Office, ASIC, the Provisional Liquidator, foreign regulatory authorities and/or any current or contingent creditors from properly reviewing the affairs of Commercial IBT and its shareholders, and making appropriate claims.
Background
Commercial IBT is also registered in Labuan, Malaysia, under the name Commercial IBT Bank, and was issued an offshore banking licence on 1 April 2003 by the Labuan Offshore Financial Services Authority. Commercial IBT maintains offices in both Labuan and Melbourne.
Documents lodged with ASIC as at 30 July 2004 disclose that Commercial IBT’s purported issued and paid up capital was AU$2,209,930,550 (AU$2.2 billion).
ASIC alleges that Commercial IBT has not provided accurate and consistent information to Australian regulators. In support of this, ASIC submitted that Commercial IBT had provided or reported inconsistent financial data and reports to ASIC, the Australian Prudential Regulation Authority (APRA), the ATO, an Australian bank, and foreign regulatory authorities and rating agencies.
In addition, ASIC is concerned that Commercial IBT has inadequate accounting and financial reporting measures in place and has failed to keep proper books and records.
ASIC Website: Printed 02/10/2010
