Meta Health 5DX , on April 12, announced that it has lodged a police report against Dr Vas Metupalle, who is the chief medical officer of its wholly-owned subsidiary 5Digital. 5Digital was formerly known as Metal Precision Services.
The police report was lodged on the same day as Metupalle’s termination.
The company added that it had first discovered “certain irregularities” concerning the sale transactions involving another one of its subsidiaries, Gainhealth, in March. It was then made aware that two police reports were lodged by two customers of Gainhealth on March 25 and March 27.
In its filing, Meta Health stated that it had “reasonable grounds” to believe that Metupalle had deceived or sought to deceive 5Digital and the group after conducting its own investigations. The investigations include instructing its auditors, Foo Kon Tan, to conduct further checks and reviews, suspending Metupalle from his position, and engaging its employees, customers and suppliers who may have been involved.
While investigations by the police are still ongoing, Meta Health expects the allegations to have a “material negative impact” on its financial statements for the FY2022 ended Dec 31, 2022.
Shares in Meta Health closed 0.1 cent lower or 5.263% down at 1.8 cents on April 12.
