Asia Power Corporation, which manages and operates power stations in China, has sacked its financial controller for allegedly withdrawing company funds by forging signatures on a number of company cheques.
Mr Tan Liang Kwang, 32, admitted to the wrongdoing, the mainboard-listed company said in a stock exchange filing today.
Mr Tan has also resigned with immediate effect from his position as joint company secretary of the company.
A police report was lodged yesterday and the auditors of the company have been duly notified.
The group will provide all necessary information and assistance to the police in their investigations, Asia Power said.
Pending the recruitment of a qualified successor to assume the financial controller post on a permanent basis, the company intends to appoint an external accounting firm to assist it with the group's finance function as soon as possible, and has today met with a number of accounting firms for this purpose.
Management has commenced an internal investigation into the matter. Meanwhile, the audit committee will be appointing an external firm to undertake an immediate special audit to ascertain the full extent of Mr Tan's alleged wrongdoing and the impact on the group's financials.
The special auditors will also assist the board to review and strengthen the group's internal controls.
Asia Power shares, which were suspended from trading today, last changed hands at 8.7 cents.