Wednesday, November 08, 2006

Summit Hotel Subang USJ transfers out RM500,000 every month

Had dinner with some ex-staff of Meda, some of them who worked closely with the management.

I think all suppliers of Summit Hotel Subang USJ have no hope of collecting their monies. Same for Meda Complex but I will talk about that in another post.

I am told that every month, RM500,000.00 must be transferred out of the hotel's account and deposited into the Meda head office account. This is regardless of the hotel's cash flow situation. If the hotel's occupancy is poor and their F&B revenue is low, that's too bad.

Every month, the accounts dept there work like crazy to get the money for Meda h.o. They leave enough just to pay the salaries of the hotel staff. On some months, they don't even have enough to transfer over to Meda h.o. but they must still find a way - don't pay contractors and suppliers.

Some suppliers and contractors demanding payment have been told bluntly that hotel has no money. Sometimes, they are told the cheques are ready, but cannot collect yet, because there's not enough money in the bank.

This has been going on for the past few years.

What's more fishy is that, after the money has been transferred to Meda h.o., it is again immediately transferred out to unknown bank accounts that have nothing to do with the hotel or the Meda group. The management staff have no idea where the money is siphoned out to. They can only speak quietly to some close friends and colleagues about their doubts. I guess only the Group MD Mr Kenneth Teoh will know, because he is the one who gave the order.

While so many suppliers and contractors are suffering from this company's bad payment record, the directors are making it look like they have no money when actually they do have it. What they have done with the money is a mystery.

In fact, many middle-management are fed up with the owners. Because more and more suppliers are avoiding the hotel and the Meda group, middle-managers often have to call in their personal friends to "help out". The hotel may stop functioning if they can't get in supplies or works done. But after the works are completed and supplies delivered, chasing after payment becomes a big headache.

Even the ex-staff who knew about all this is cursing them. Those still working there are dying to get out. They are just waiting for other job opportunities. Anyway, might as well not work there because their pay is way below market rate. It's bad for your own reputation.

More news to come.

No comments: