RM4.4 Million Fines for 12 Companies Linked to GISB

In a significant move by the Ministry of Domestic Trade and Cost of Living, an impressive set of fines totaling RM4.4 million has been imposed on 12 companies found to have connections with GISB Sdn Bhd. This revelation comes from Datuk Armizan Mohd Ali, the minister overseeing the ministry, following an in-depth investigation conducted by the Companies Commission of Malaysia (SSM). As reported by Sinar Harian, the inquiry revealed these businesses’ failure to uphold their obligation of submitting annual and financial statements, a crucial requirement for corporate transparency and accountability.

The discovery that spurred these penalties stemmed from systematic data checks and rigorous website searches, which highlighted that GISB and other entities using the GISB name in their Companies Commission of Malaysia registration were involved. Further findings indicated a staggering connection to about 201 businesses linked to GISB, emphasizing the significant reach and influence of this corporate entity.

Datuk Armizan Mohd Ali’s statement underlines the ministry’s role in this situation. He emphasized that while GISB tops the list, there are in reality 17 more companies registered under the same name, revealing the extent of this corporate web. The ministry is concurrently assisting with legal matters concerning non-compliance with relevant business laws, further demonstrating their commitment to upholding the regulatory framework in Malaysia.

This development runs parallel to a slew of other allegations against GISB, including ten new police reports submitted to Bukit Aman that accuse GISB of exploitation, tax evasion, and other breaches of trust. Despite these complex legal layers, Armizan remains resolute that his ministry will work closely with the police to ensure that justice is served and that the companies involved face the necessary repercussions.

Coinciding with these revelations, a separate probe revealed that six business premises linked to the GISB group were detected in Perlis, showcasing their expansive operational network. While the Malaysian Anti-Corruption Commission (MACC) has decided to stay out of the GISB probe, the authorities have already conducted several raids, uncovering material related to Al-Arqam, a group with a controversial past, in premises located in Johor.

Armizan’s unveiling of these fines occurred during an address at the TikTok Shop Seller Summit 2024, underscoring the ministry’s proactive stance on corporate compliance amidst ever-evolving digital and traditional business landscapes. The ongoing saga with GISB presents a critical reminder of the importance of compliance with financial and regulatory standards, ensuring business practices are transparent and above reproach in Malaysia’s dynamic economy.