KUALA LUMPUR: DIS Technology Holdings Bhd (DIST) expects the preliminary findings of an investigation into a suspected RM131 million fraud case to be made within three weeks.

Upon enquiry with its solicitors Messrs Khor, Ong & Company, which is conducting the investigation, DIST said the estimated time to finalise the investigation may take about five weeks as the ongoing probe included cross-border inquiries and interviews.

"DIST shall inform of any development in the investigation from time to time when pertinent," it said in a statement released via Bursa Securities on Wednesday, March 17.

DIST has said earlier that it would face "difficulties in meeting payments to its creditors and borrowers" if its suspicion of the massive fraud case impacting the company was proven true.

It has also said the possible fraud may result in a misstatement of its accounts, to the tune of RM131.33 million in sales over two financial years — 2008 and 2009.

The alleged fraud was reported by a major customer in Hong Kong, Starlight Marketing Ltd, involving one of the latter's staff. It said the RM131.33 million sales were made over six quarters starting July 1, 2008 and the total owing as at Dec 31, 2009 to the group was RM82.07 million.

DIST, which is in the business of manufacturing and selling consumer electronics, has been incurring losses for the past two years. The stock fell one sen to 1.5 sen on Wednesday, with over 13 million shares changing hands.