I refer to the malaysiakini report Well-connected Nasioncom in troubled corporate waters. Based on this and other media reports, this company has been misrepresenting its financial accounts with inflated sales amounting to about RM143 million.

Did the company also inflate its sales figures for the years 2003 and 2004 which were before the company became publicly-listed? The Securities Commission should investigate this. It must allow the fact that Nasioncom has powerful and politically-linked directors including the son of our International Trade and Industry Minister Rafidah Aziz.

The Securities Commission should, in fact, have taken action before it allowed Nasioncom to undertake in initial public offering (IPO). I don't how IPO approval was granted so freely to this company by the SC if they had really scrutinised its accounts. My guess is that they didn't.

This will explain why SC only hauled up Nasioncom on their 2005 accounts and not those before. I believe they are going to fine them with the minimum sum of penalty just to cover up the whole story.

But this is unfair to investors like me. Nasioncom has a very good profile of VVIP on their board. They have already 'cashed out' during the first day of the IPO. Then there is their moratorium shares which can be cashed out yearly. It is believed that this month, the directors have another big portion of moratorium shares to be cashed out in their second year of listing after the IPO.

The SC should be totally transparent into its investigation into Nasioncom. It should do this to quell market rumours that it is favouring this company for an easy let-off.

As a Malaysian and an investor, I'm greatly saddened by this episode not only for my own investment but for the integrity of the whole system.