The Securities Commission Malaysia (SC) has visited Zetrix AI’s headquarters in Petaling Jaya in connection with an investigation involving the company.
The Edge Malaysia reported the visit on 28 October, citing sources familiar with the matter.
Zetrix AI, formerly known as MyEG Services Bhd, collects payments for Malaysian government agencies and operates the Zetrix blockchain platform.
In February, the company secured US$40 million from the International Finance Corporation to expand its digital identity and blockchain infrastructure.
JPJ suspension and police investigation
Zetrix AI has faced several setbacks since late August. In early October, the government suspended the company’s status as a collection agent for the Road Transport Department (JPJ) over RM314 million in unremitted revenue owed to the department.
Transport Minister Anthony Loke Siew Fook told Parliament that the government was in the process of taking legal action, including a civil suit, after the company failed to settle the outstanding collections and penalties within the stipulated period.
He said companies could not use government collections to fund their operating expenses.
The Royal Malaysia Police (PDRM) and the Malaysian Anti-Corruption Commission (MACC) are reportedly sharing intelligence in connection with a police investigation into the JPJ arrears.
Zetrix AI said it was cooperating fully with the authorities and that its day-to-day operations remained unaffected.
Zetrix AI breaches sukuk covenant
About two weeks after the JPJ suspension, Zetrix AI disclosed that it had breached a covenant under its RM2 billion sukuk programme. The covenant requires managing director Wong Thean Soon to remain the company’s largest shareholder.
Forced sales of Wong’s pledged shares reduced his stake from 29.25% on 1 April to approximately 1.84%.
The Social Security Organisation (Socso) has since become the company’s largest shareholder, holding 216 million shares, representing a 2.72% stake.
Zetrix AI failed to reach an agreement with sukukholders to remedy the breach by the 22 October deadline. A meeting held the following day also ended without an agreement, and the company plans to hold another meeting.
If the company defaults on payment, its sukuk obligations would amount to RM2 billion in principal and RM164.5 million in future coupon payments.
The Edge Malaysia reported, citing sources familiar with the discussions, that Wong was seeking six months to restore compliance with the shareholder covenant.
Featured image credit: Edited by Fintech News Malaysia, based on image by ake1150sb via Magnific
