Friday, November 10, 2006

Meda Inc Top Management Use False Invoices

My boss is in a very bad mood today. Cash flow is very tight. He sounds quite impatient. I called Meda Inc accounts dept again. No payment.

Last night I was having a few drinks with my friends in PJ. I bumped into Lily who used to work for that notorious company and we talked.

I heard something that did not surprise me. I know it is not uncommon, but the extent of it shocked me.

The big bosses of Meda Inc actually used false invoices to pay themselves and some of their senior managers, over and above their usual salary paychecks. The invoices would be for the purchase of some products such as T-shirts and some other items, but actually no such purchases took place. Many tens of thousands of ringgits have changed hands. She said she thinks it could run into hundreds of thousands but she could not be sure. She mentioned that even the Group MD Kenneth Teoh has been doing it. When the boss says to pay the bill, who dare to ask questions?

Meda Inc Board of Directors. Group MD Kenneth Teo is the one with the red circle.

I wonder whether those senior managers who signed the receipt vouchers did actually collect the money or did all of it go straight to the Group MD's pocket.

Their internal auditors are drawing salaries from the same bosses, so they are useless to control the abuse and fraudulent activities.

If the top people are rotten, then the people at the bottom would be the same.

Lily also mentioned that a senior technical manager with the Meda Inc group who worked there for many years was asked to leave after it was discovered that a maintenance contract that was worth RM1 million over several years had severe irregularities.

This was discovered after the hotel manager called in an independent consultant to inspect the equipment as the equipment kept breaking down despite frequent repairs over a year, which led to many customer complaints.

The independent consultants found that some expensive equipment parts that should have been supplied and installed at Summit complex and Summit hotel were missing. These parts were important to the smooth functioning of the equipment system. Anyway, the technical manager had approved and expedited the payment. What she heard was that this manager had a share in the equipment supply & servicing company.

I could not believe it when she told me that the sacked technical manager was offered four or five months lump sum salary to resign. Maybe this guy knows too much about the unscrupulous and corrupt dealings of the owners. The extra generous "bonus" was probably given to him to keep his mouth shut.

In my post yesterday, I had mentioned that the owners and board-directors themselves have been creating companies outside Meda Inc to secure the supply of equipment and service contracts to Meda. The top bosses themselves are doing all these nonsense, what to expect of the lower level?

** [The hotel manager referred to in this post resigned on their own accord from the Summit Hotel Subang USJ shortly after that. A new hotel manager by the name of Mr R.S. then took over. I will have something to write about this Mr R.S. later.]

1 comment:

Anonymous said...

YES is true!!! MEDA inc BERHAD USES false INVOICES , CERTIFICATE AND PAYMENTS. They uses there own people(relatives) to fake their invoices , certificate and payments. Definitely TRUE!!!!!!!!!