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IOUpay goes into voluntary administration over suspected fraud

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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.

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