Ovanti Wins Malaysian Judgment as Historical Recovery Campaign Expands

iSentric Secures RM5.17 Million Judgment

Ovanti Limited (ASX:OVT) has won an initial Malaysian High Court judgment worth RM5,169,333.34, or about A$1.78 million, in a recovery campaign over historical transactions involving its Malaysian operations. The award was made in favour of wholly owned subsidiary iSentric Sdn Bhd against Akay Holdings Sdn Bhd and Piminik Sdn Bhd.

The court awarded RM4.5 million against Akay and RM669,333.34 against Piminik. Ovanti said it will immediately pursue enforcement, but the judgment itself is not the same as cash received. The company has not disclosed the recoverability of the defendants’ assets or the expected timing of any payment.

Former CFO Found Liable

The court separately found Kenneth Kuan, the former chief financial officer of Ovanti’s Malaysian operations when they were known as IOUPAY, liable for breaching executive officer duties. Damages and costs have not yet been assessed, leaving the financial consequence of that finding unresolved.

That finding adds a personal-liability track to the corporate judgment. Ovanti also says it is taking further steps in Malaysia concerning an earlier High Court judgment linked to the underlying transactions, although the announcement does not specify the amount still at issue or the precise relief being sought.

Additional Assets Remain Partly Stayed

A separate order requires RM1,592,500, equivalent to about A$548,570, to be returned to Ovanti and the company says that amount falls outside the relevant stay. A further RM53,542.98 held in a CIMB Islamic Bank account, together with any accretions, and two vehicles have also been ordered returned.

Those latter recovery orders remain stayed pending an appeal. Ovanti explicitly cautioned that the orders do not confirm the funds or vehicles have been received, making enforcement and actual asset transfer the next practical tests for the recovery campaign.

Australian Claims Could Broaden the Dispute

Following the Malaysian decision, Ovanti says it is preparing separate Australian proceedings against former directors, officers and former auditors over their conduct and responsibilities concerning the historical transactions and associated financial reporting. Legal advisers are still identifying potential causes of action and assessing the losses that may be claimed.

The company estimates the quantum of all other outstanding claims at up to A$20 million. That figure is an estimate of potential claims, not a judgment, settlement or assured recovery, and the proposed Australian proceedings have not yet commenced.

Enforcement Becomes the Next Test

For shareholders, the Malaysian judgment provides a concrete legal win but leaves the most important financial question open: how much of the awarded money and ordered assets can Ovanti actually collect? The answer will depend on enforcement against Akay and Piminik, the assessment of damages and costs against Kuan, the appeal over the stayed assets and whether Australian proceedings are ultimately filed with recoverable losses established.