IOUpay, a Southeast Asian fintech company, has placed its parent company into voluntary administration with PwC Australia due to a significant fraud discovery. The company claims that it has outstanding debts that it cannot repay, and its shares have been suspended since the fraud was uncovered.
Facts
- IOUpay has placed its parent company into voluntary administration due to outstanding debts with no reasonable prospect of repayment.
- The company uncovered a significant fraud in its Malaysian office that reportedly amounted to millions, and its former CFO, Kenneth Kuan Choon Hsuing, is suspected to be involved.
- Hsuing is being investigated by Malaysian authorities, including the commercial crime and anti-money laundering divisions of the Royal Malaysia Police, with efforts in place to recover misappropriated funds.
- IOUpay initially met with potential investors from Australia and Malaysia to obtain funding, and it received a non-binding debt funding proposal from Australian firm Finran, who eventually withdrew its offer.
- Administrators from PwC Australia will evaluate genuine proposals that will benefit the company’s shareholders and creditors.
- IOUpay provides fintech and digital commerce software solutions to institutional customers, including 20 of Malaysia’s leading banks, insurers, and telcos.
- IOUpay’s shares have been suspended since the discovery of the fraud last month. Its subsidiaries in Malaysia will continue to operate as usual with minimal business disruption.
