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aws全区号( take: ATA IMS jumps 23% following response to allegations



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KUALA LUMPUR: Shares in ATA IMS Bhd bounced higher on heavy trading volume on Wednesday following its response to recent news reports alleging the mistreatment of workers at its plants.At 11.15am, shares in the electronic parts supplier were the most actively traded on Bursa Malaysia, having been bought up 10.5 sen or 23.86% to 54.5 sen apiece on the back of 204.11 million units traded.In a statement yesterday, ATA said it strictly adhered to Malaysian labour law and workers worked overtime solely on a voluntary basis.It added that all workers on ATA's premises have valid work permitsIt also commented on a Reuters report on foreign worker Dhan Kumar Limbu, in which there were allegations of physical abuse by the police after being brought in for questioning by ATA officials."The company wishes to inform that the Johor police has issued a statement on Nov 27, 2021 stating that to date, it has not received any reports regarding the alleged physical abuse by the police of the aforesaid ATA worker."The company had also engaged a prominent law firm which conducted an independent audit. Based on its findings, the law firm concluded that the allegation made by the aforesaid worker is unjustified and unsubstantiated and unlikely to have taken place,” said ATA.ATA's share price took a beating after British high-tech home appliance maker Dyson terminated its contract with ATA following an audit of the company's labour practices and allegations by a whistle-blower.While the announcement of the contract termination was on Nov 25, ATA's share price has been plunging since Nov 12, the day it announced a net loss of RM11.17mil in 2QFY22 compared to a net profit of RM52.29mil in the same quarter in 2020.The subsequent share price decline of RM2.16 or 84% to a recent closing low of 41 sen a share on Dec 1, 2021, was likely exacerbated by market talk and speculation prior to the announcement of the Dyson decision.


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