Zetrix AI Bhd has denied rumors linking the company to former human resources minister Datuk Seri M Saravanan’s graft case. The company’s share price plunged 50% on Friday, prompting an unusual market activity query from Bursa Malaysia.
The company stated that it has no links with Saravanan, who has been charged with corruption in relation to the approval of foreign worker quotas for a local company in 2022.
Zetrix AI emphasized that there is no basis for such rumors or speculation, and the company is not aware of any connection between the said charges and its business and affairs.
The shares had fallen by 30 sen or 50.4% in morning trading, prompting Bursa to suspend intraday short selling for the rest of the day.
The stock closed the day at 29.5 sen with 1.05 billion shares changing hands. At the same time, the group’s associate HeiTech Padu Bhd also plunged 30% to an intraday low of 87.5 sen on Friday.
Zetrix holds an indirect stake of 16.9% in HeiTech Padu. Saravanan, 58, was charged at the Kuala Lumpur Sessions Court with allegedly receiving over RM1 million in bribes for approving foreign worker quotas for a local company in 2022.
The three charges alleged that he received monies through Syed Amirul Syed Ahmad in the form of cash and a cheque. The former minister pleaded not guilty to committing the offence from June 2022 till July 2022 while he was still heading the human resources ministry.
Zetrix AI’s denial of any links to Saravanan’s case may help to alleviate concerns among investors, but the company’s share price is likely to remain volatile in the short term. They will be closely watched by investors and regulators.
According to the report, Bursa Malaysia’s inquiry into the unusual market activity is ongoing. The exchange’s actions, including the suspension of intraday short selling, aim to maintain a fair and orderly market.
Related: Singapore drama uses AI to aid production
In the context of regulatory efforts to combat corruption and ensure transparency, Zetrix AI’s clarification is a step towards reassuring investors and upholding the integrity of the market. It is a step towards transparency.
The company’s associate, HeiTech Padu, is also expected to be closely watched by investors and regulators in the coming days. They are expected to face scrutiny.
The significant decline in Zetrix AI’s share price and the subsequent suspension of intraday short selling demonstrate the exchange’s commitment to protecting investors and maintaining market stability. Bursa Malaysia’s actions are guided by its rules and regulations, which are designed to prevent market manipulation and ensure fair trading practices.
Zetrix AI’s response to the unusual market activity query is a sign to the company’s commitment to transparency and accountability. By clarifying its position and denying any links to Saravanan’s case, the company is helping to maintain investor confidence and uphold the integrity of the market.
The case against Saravanan is a reminder of the importance of combating corruption and ensuring transparency in government and business dealings. The charges against the former minister highlight the need for robust regulatory frameworks and enforcement mechanisms to prevent corrupt practices and protect the public interest.
In the electronic government services sector, where Zetrix AI operates, transparency and accountability are essential for building trust and confidence among citizens and businesses. The company’s denial of any links to Saravanan’s case and its commitment to transparency are critical in maintaining its reputation and upholding the integrity of the sector.
The ongoing inquiry by Bursa Malaysia into the unusual market activity is a reminder that regulatory bodies are vigilant and committed to maintaining fair and orderly markets. The inquiry will help to determine the cause of the unusual trading activity and ensure that any wrongdoing is addressed.
Zetrix AI’s associate, HeiTech Padu, will likely face increased scrutiny in the coming days, given its indirect relationship with Zetrix AI. The company’s share price decline and the subsequent trading activity will be closely monitored by investors and regulators to ensure that any unusual activity is addressed promptly.
Leave a Reply