THE Human Resource Ministry told Utusan Melayu (Malaysia) Berhad to settle the unpaid wages of its former staff, including those who left under a voluntary separation scheme (VSS) last year.

In a statement, the ministry said an internal investigation was carried out by the Peninsular Malaysia Labour Department in mid-October and it the company has a declining cash flow since May 2018.

“There were efforts by the management to stabilise its financial troubles, including offering VSS to 708 staff.

“The first phase was in November and the company sold some of its assets but it was not enough.

“Now, the company agreed to a creditor’s voluntary liquidation proposal and appointed UHY Advisory (KL) Sdn Bhd as its interim liquidator.”

The ministry said department officials had met with UHY Advisory representatives on October 11 to discuss staff compensation.

The ministry said it is aware that all former employees have yet to receive their salaries for September.

“The department and UHY Advisory agreed on a reasonable amount of compensation for all former employees as stipulated under the Employment Act 1955.

“The ministry is also concerned about the unpaid salaries for September. We hope Utusan can resolve the overdue salaries for those who took the VSS scheme.”

UHY Advisory will hold another meeting with former Utusan employees on October 30 to share plans to help them.

On October 9, Utusan Malaysia announced it is shutting down as the company was no longer able to shoulder the burden of its debts accumulated over the years, estimated at between RM240 million and RM340 million.

It also said Utusan was stopping its operations with immediate effect, with employees’ services to end on October 31.

Employees have been told that some of them would get job offers from Dilof Sdn Bhd, an Utusan subsidiary that had earlier obtained permits to issue Utusan Malaysia and Kosmo!. – October 22, 2019.