Charges dropped against Mewah’s subsidiary and its Chairman

The court ruled that there is insufficient evidence to prove that Mewah Oil Sdn Bhd is capable of forging documents on a CPO purchase.

According to a statement, the Sessions Court Judge Klang has dismissed all charges against the Company’s subsidiary Mewah-Oils Sdn Bhd and Dr. Cheo Tong Choon, its Controlling Shareholder and Chairman.

The court ruled on January 26, 2012 that the prosecution had failed to establish a prima facie case and therefore there was no need for the defence to be called.

As listed on pages 108-109 of Company’s Prospectus dated November 16, 2010, MewahOils Sdn Bhd and Dr Cheo in his capacity as a director of MOSB, were accused of receiving stolen Crude Palm Oil and falsifying customs related documents. The charges arose from a complaint made by Lushing Traders Pte Ltd for the CPO purchased by MOSB from Summerwind Trading Pte Ltd, which Summerwind had purchased from Lushing.

The learned judge ruled, “There is insufficient evidence to prove that Mewah Oil Sdn Bhd is capable of forging or falsifying those documents.

“In all these contracts of selling and buying of palm oil, Mewah Oil does not have any contractual relationship with Lushing Trading… Mewah Oil continuous contract is with Summer Wind... This is a mere case of Crude Palm Oil not paid by Summer Wind to Lushing Trading, and nothing more and nothing less… Mewah Oil could not be blame(d) for discharging the cargo because they must have thought that the deal between Lushing and summer Wind would eventually be settled by those parties”. the Judge added.

Mr. Rajesh Chopra, Group Chief Financial Officer commented “We are very pleased with the outcome. We have always maintained that this dispute is between Lushing and Summerwind and we have unnecessarily been dragged into their dispute. There is absolutely no merit in the allegations and as expected, the honourable judge has ruled unequivocally in our favour by stating that the prosecution has failed to make out even a prima facie case and there is no need for us even to present our defence.”