Wednesday, November 08, 2006

Creditors kick down door at Meda Inc Bhd office

Recently, a group of men went to Meda office to demand payment of their overdue bills. The amount owed was quite substantial and it was outstanding for a very long time.

The creditors were already so angry at being denied their payment for no reason. But when they were there, nobody in the office bothered to deal with them properly. The managers responsible were avoiding them. They became even more furious.

They created a very big scene there. They kicked down the office door. The staff were quite afraid, but there was nothing they could do because they are not the ones signing the cheques. The one siging the cheques is the Group Managing Director, Mr Kenneth Teoh. But of course, Mr Kenneth Teoh did not have guts to face the creditors. He was hiding in his office on another floor.

Wah! Big multi-million ringgit corporation with property developments of RM250MILLION , RM600MILLION, with vision, developing new townships, owning hotels and shopping complex all over Malaysia, got their accounts office door kicked down by creditors!!! So malu!!! Mr Kenneth Teoh is still driving around in his black BMW 7 series, but cannot afford to pay his suppliers. So malu!!!

I don't blame the creditors for showing their anger. Many of them are small business people who depend on customers' prompt payments to settle their own business and family bills. When customers like Meda Inc don't pay, these suppliers' get into trouble with their own suppliers. When they go home, they may find that Tenaga already cut their electricity.

Meda Inc already have such a bad reputation in the market since many years ago. Actually, Meda Inc is almost a bankrupt company sustaining mainly on suppliers' money. According to their financial reports ( you can read the unaudited reports here, the company is making money on some years. But what have they done to the money?

My contacts in the company say they don't have enough money in the bank. I believe the owners/directors of the company are using the money for some other unacceptable deals, which is illegal, and is against the law of directors' duties. I don't think minority shareholders will be very happy if they find out about this.

I heard that Mr Kenneth Teoh, the Group Managing Director and one of the major shareholders of Meda Inc, lost very heavily in the stock market recently. I'm not sure what happened. I checked with some of my friends, nobody can remember whether there was a sudden market crash recently.

So, what have they done to the money if Meda Inc is making profits? I don't believe their financial reports are accurate, as it has not been audited by an external auditor. They were forced to sell all their shares in Salcon Berhad, which I was told has been doing very well all along, to pay off their huge debts. What have they done with the money?

Is it because the directors used Meda funds to play around outside until all the money is lost and gone? Is that legal? Can someone please investigate and charge them for wrongdoing, please?

They should pay off all their suppliers if they want to have good reputation. It's bad karma for them to do business like that. One angry supplier will tell 200 others, who will tell another few hundred more. These people are also potential customers of the Meda Inc. Really, the people running Meda Inc are not fit to run the company because they don't understand this principle.

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