Vin’s Holdings wraps probe into former employee’s control bypass

Procurement controls were tightened to separate request, approval, and payment roles.

Vin’s Holdings has completed a special investigation audit into irregular transactions, confirming earlier findings of fraud risk indicators linked to an ex-employee.

The latest report found that the group’s existing policies and procedures were largely in place, but the former employee was able to bypass them due to his senior role.

The audit covered specific payment transactions, potential conflicts of interest, vendor master data, and human resource onboarding controls.

The company had earlier agreed to a settlement with the former employee over irregular transactions amounting to $44,300.

It said it received an initial payment of $26,300 by 30 April 2026, whilst the remaining $18,000 will be paid in six monthly instalments of $3,000 starting 29 May 2026.

Vin’s Holdings said its board and audit and risk management committee accepted the internal auditor’s recommendations and implemented additional measures to strengthen controls.

These include enhanced pre-employment due diligence, conflict-of-interest declarations, independent background checks for senior hires, and a centralised register of interests.

The group also reinforced segregation of duties across procurement and payment processes, including separate roles for procurement requests, evaluation, approval, goods receipt, and payment approval.

Meanwhile, the group said the report does not constitute a legal determination of fraud, misconduct, or liability.

It added that the review was not an audit or assurance engagement conducted under auditing standards, and no assurance opinion was expressed.

The external auditor confirmed that the irregular transactions do not have a material impact on the group’s previously issued audited financial statements for FY2025.

Vin’s Holdings said it will make further announcements if there are material developments.