Want to buy their properties? Think again!

Cova Villa, built next to an oxidation pond!

Meda Inc Bhd & sister companies are not only very bad paymasters but also lousy developers: More proof

You will be amazed at how many companies they are operating.

Usually, if a developer has built a good reputation in the market, they will continue using their proud name in all their projects. A recognisable name builds confidence in buyers and investors. This ensure that their projects are sold out quickly. A good name projects a good image and creates market support and goodwill. It's called branding.

Not for Meda Inc Bhd.

The three brothers Datuk Patrick Teoh, Teoh Seng Aun, and Kenneth Teoh Seng Kian are owners and shareholders in each others' companies. This way, they ensure their total control and power over all management decisions in all the three companies (Meda Inc Bhd, EcoFirst and SEGi). Not only three, but countless other subsidiary and private companies that they set up to handle projects within the Group.

My unhappiness is directed only at Meda Inc Bhd where Kenneth Teoh is the Group Managing Director. Summit Hotel Subang USJ is owned by Meda Inc Bhd, and managed by Kenneth Teoh's private company Summit Hotel Management, which recently changed name to Regalia Hospitality Management Sdn Bhd. (To hoodwink unsuspecting new suppliers?)

I do not see the need to conduct business under the disguise of 40 to 50 companies, unless it is all a sham to keep defrauding suppliers and contractors to "sponsor" and "finance" their projects and then run away without paying. Either the suppliers have to sue to get payment, which will incur a lot of legal costs, or die waiting, which means Meda Inc and their group of companies get to use products and services without paying.

Changing names to sell their projects and developments also clearly show they are aware their names stink in the market, both to buyers and suppliers.

Their latest project is at THE COVA/COVA VILLA, KOTA DAMANSARA. (See news here
http://star-space.com/news/story.asp?file=/2006/7/24/propertynews/14906615&sec=propertynews. It is developed and marketed under ANDAMAN GROUP SDN BHD. All those faces you see in the report are just "front men" doing the work for their masters in the background. Yet, the legal developer is a company called PHARMA EXCEL SDN BHD (see this link http://www.iproperty.com.my/property/development.asp?pid=798&nav=t Same address. Andaman Group Sdn Bhd is owned by SEGi, Meda Inc Bhd and EcoFirst Consolidated. There you are, all three brothers in there. Many people won't know. But maybe they do...

I came across this Malaysia Property forum, where you can read some comments from property buyers about Cova Villa and the developers. Go here: http://propertymalaysia.blogsome.com/2006/06/09/preview-cova-villa/#comments (see comments 11, 12, 13, 14, 16) and here http://propertymalaysia.blogsome.com/2006/07/02/cova-villa-kota-damansara/.

Every day, the Teoh brothers are devising new schemes and new companies to build, develop and market their projects under new companies, and unsuspecting buyers and suppliers are getting tricked into doing business with them. While some suppliers may get paid if their products and services are crritical, the rest of them will have to take legal action to recover their monies. Some of them may just fold up and MEDA INC BHD and their gang of companies will benefit - no need to pay. They never intended to pay anyway. They'll create all sorts of excuses to delay, to demand discount and to not pay.

And when you decide to sue them, you may only be suing a shell company with no assets or cash. The company may show a negative bottomline, and if you force them to liquidate, well, they'll just close it but you get nothing. The money is not in there anymore.

What are we dealing with here? A group of unscrupulous fraudsters and conmen masquerading as Bolehland's legal businessmen??

In my mirror blog, I have listed the companies that come under these 3 Teoh brothers. It's here: http://meda-inc-bhd.blogspot.com. It's not complete because I know they keep creating new companies all the time to avoid bankruptcy to their listed companies, while sucking in money from buyers and products and services from suppliers through their private ones. I will keep updating it as long as I receive new info from readers and friends.

Are the Meda Inc Bhd bosses/owners trying to shut me up?

Now I have their attention!

On 22nd Nov, I received the following 2 comments from someone who calls himself /herself "Inspector Gadget":

Comment (1) "Inspector Gadget: Evidence suggests that XXX and YY, the 2 most senior heads have abuse their power many times and the owners will not hesitate to take actions against them. Are you aware of that?"

Comment (2) "Inspector Gadget: I won't need your approval to bring the relevant people to justice. Rumours said that this MD's has a girl who drive a H@@@@ ZZ####. Are you aware of that?"

In the above comments, I have substituted the initials of the individuals with XXX and YY and the car number with ZZ#### because I do not wish for any unknowing people to be wrongly accused or drawn into this issue.

I sent the comments to some of my close friends and asked what they thought of them. I checked with one of my Meda friends and I was reminded who those initials are. Now I remember them.

Yes, it seems that Inspector Gadget is probably someone who works closely with the owners of Meda Inc. Inspector Gadget said "owners" so he probably have Kenneth Teoh and brothers Teoh Seng Aun and Datuk Patrick Teoh in mind as well. (His brothers names can be found on the www.meda.com.my website). Who knows, Inspector Gadget could be one of the brothers who may have received an email about this blog from someone.

From the tone of comment (1), it seems that Inspector Gadget assumes that this blog is somehow connected to XXX and YY, otherwise why bring up these 2 names? That he mentions the taking of action against XXX and YY by the owners, it sounds like a threat. Is Inspector Gadget trying to hint that action against XXX and YY will be taken......unless I stop telling you what you don't know about Meda Inc?

I think that's the message Inspector Gadget is trying to send. This is further strengthened in his comment (2) where he mentions an MD's girl driving a car with that number plate. I'm not sure what he's trying to tell me, almost everybody has a boy or a girl sometime. Is this something unusual? Why the car brand and license plate number? Is Inspector Gadget trying to tell me that he knows something about this MD (who??), and that he might want to use it against this MD? So, if this MD and the other 2 individuals are involved in this blog, then they must stop it or else...is that correct?

Inspector Gadget is just trying his luck. He may do better at Genting than over here.

Inspector Gadget does not know that I don't need any senior heads or whatever for me to set up this blog and put in the exposes here. A lot of the stuff that I have written, and stuff that I intend to write in the future, are already known to many people in the market. I just need to gather the facts from them.

I don't think Inspector Gadget understands just how many people who have left Meda Inc have the important information and facts that I can use. I suggest he count them over the years. Inspector Gadget also does not realise that even those still working there are only there for their next pay day and they can't wait to get out when another job comes along. They are only too happy to keep me updated on what's going on!

It's time Inspector Gadget wakes up and BE AWARE that people may be taking your monthly gaji but they are ashamed to work for a company with a rotten reputation.

Suppliers and contractors meet on a daily basis and they often share information with each other, despite being competitors. Every supplier's top concern is whether this customer has a good or bad payment record. Even Meda Inc Bhd customers - the tenants - talk bad about the company on a daily basis. I was at a hair salon at Summit complex 3 weeks ago and the boss lady said she regretted buying the unit and cursed the complex management.

Frankly speaking, even "friends" of Kenneth Teoh whisper about Meda Inc's poor payment and try not to do anything for him in case they end up with bad debts. What more can you expect of others?

It seems that bad payment reputation is a specialty of Meda Inc Bhd since long time ago, as if the owners/bosses truly enjoy their bad reputation. Maybe you can do that to others, but not everyone will let you get away with it. You may hear about this in the very near future.

If Inspector Gadget's intention is to silence me, I would like to thank him for his comments but I will not be silenced. (Unless you have settled all the outstanding bills). My friends in the media are waiting for this blog to get more juicy before they pick it up and write about it. We Malaysians love such stories, don't we? Let's see what the owners will say when their shares drop to 5 sen. Let's see what they will say when all the banks pull back their credit lines. (Some credit lines have already been stopped). And let's see what they will say when SC starts investigating.

Inspector Gadget should go back to his owners and help to them to recall that they also check into Summit hotel with numerous China & Malaysian women on many occasions - not their wives, of course. Inspector Gadget, I really do not want to spill these out because it's not my intention to break up the owners' families, but you started it. Maybe I should give a more detailed account? These will be more interesting than a girl driving a car.

Inspector Gadget should also know that if employees didn't do things right, action have to be taken against them. Why were they not taken? Is it because the real fault lies at the top (Kenneth Teoh and his brothers)? Is it because the real truth is that those at the top are actually the ones with too much dirt on their own hands? I am pretty sure that whatever the employees did or did not do had the tacit agreement or knowledge or approval or instruction of the owners. If not, then the top bosses/owners should not be collecting their fat monthly salaries and director fees because they have failed their duties. More likely, I think the employees could be doing what the owners themselves have been doing. A thief is always suspicious of other people stealing from him. The top man must bear the most responsibility for whatever good or bad that happens in the company. That's why his salary is so fat, right?

Whatever "action" and "justice" Inspector Gadget talks about, these would probably be so insignificant compared to the fraud, falsifying accounts, tax evasion, failure of directors' duties, victimisation, criminal breach of trust, misuse of funds, corruption, bribery, mismanagement and a host of other major offences that might have been committed at the highest level.

People who live in glass houses should not throw stones. Are you aware of that?

Reaction From Meda Inc Bhd!

It's getting more interesting

On 22 Nov, I received 2 comments. The tone and message of the comments sound like the sender works for the owners, and imply that they think they know who is helping with this blog.

I have decided to publish both comments with my response when I come back. I have to go to Nillai now and I will be back later tonight.

Anyway, I have the weekend to follow up on the posts. And to go through the emails that have come in offering more information to post on this blog. It will take a bit of time and effort as I want to ensure the accuracy of their information. I am thankful to all those who wrote in to show support. Don't worry, your email addresses will never be revealed - just between you and me, ok?

So, please come back later. There will be more, I assure you!

Did Ecstasy-pill disco in Summit complex Subang USJ belong to Meda Inc Bhd boss Kenneth Teoh??

The dadah connection? You figure out for yourself

For many years, a disco had been operating in the lower ground level of Summit shopping complex Subang USJ, until, I was told, the new Menteri Besar personally led the polis to close it down this year.

The name of the disco was called Magrave or something that sounds similar - I've never been there so I don't know how it is spelt, but I hear about it from - as you guess - the people in Meda Inc. It was located next to Songbird karaoke. Before that, it was also called Summit Dance Club.

This disco was a popular haunt for many young gals and guys from around the Subang Jaya area and beyond. On weekends, it was especially crowded. The ground level car park next to the disco was always jammed with cars.

It was also the place where youths could get their Ecstasy pills.

According to my sources, the disco was operated by people with powerful underground connections. It's ironical, even some local polis officers worked as security personnel in the disco at night, after their official duties in the day.

As my sources could not be very specific about certain details, I decided to do some research on this disco to give my readers a more factual account, if possible.

According to a forummer at community web portal (http://www.usj.com.my/bulletin/upload/archive/index.php/t-10579.html ) the disco had been raided about 25 times!!

In May 2004, NST reported that in a raid on the disco, 50 people tested positive for dadah. Subsequently, numerous raids by Anti-Narcotics and polis netted many drug pushers and abusers. The Star on 8 May 2005 reported an early morning bust that tested 199 people positive for drugs and a substantial quantity of designer drugs seized. The NST reporting the same raid stated that 2 "owners" and a dirstibutor were also arrested. Bernama news on 1st Feb 2006 reported Subang Jaya CID Chief ASP Mohd Zakaria saying he was "puzzled" as to how the disco could remain open after it had been repeatedly found to flout licensing laws and was widely known for dadah distribution and consumption. He said he had already submitted the case to the local Council for action and enforcement.

You see, closing down the disco is the responsibility of the local Municipal Council. And the Meda Inc boss is close to the officials there. Many of Meda Inc's activties and that of Summit Hotel Subang USJ operations required clearance and licensing approval from the Council. It is well known in the company that money changed hands whenever such issues needed to be settled.

(In my earlier post about a Meda Inc technical manager who was asked to resign over a million-dollar contract in which equipment paid for were actually not delivered or installed. This was the man who acted as go-between for Meda Inc and the Council. No wonder he was paid several months' extra bonus to resign. Since his departure, another trusted aide have stepped in to handle these issues, someone who has boasted to many people that he was once a member of the polis force. This must be a very very profitable job, I'm sure.)

What does the disco have to do with Meda Inc boss Kenneth Teoh?? That's what I asked my contacts.

They told me, the disco operators could never get a licence from the authorities without backing and money from his big boss at Meda Inc. The disco operators had shady backgrounds, and were connected to possibly one of Malaysia's "Heavenly Kings". The disco was registered under some runners, not the real people who financed the operation. And these operators have been seen frequently together with Kenneth Teoh - at dinners, drinking sessions, pubbing, and partying And - my contacts said - Kenneth Teoh has a share in the profits from that disco. So, through his connections with the local enforcement authority, the disco was able to stay opened for years despite 25 raids, contributing to the drug problem among the local community while he laughed all the way to the bank.

Didn't he know that the disco just below his office is a distribution point for dadah? Did he or did he not enjoy a percentage of the profits from the disco? With at least 25 raids over the last 2 years, how could the shady operators possibly stay in business without his involvement and connections? Afterall, the disco is in his shopping complex, and the operators were his buddies!

If I could, I'd try to uncover the paper trail and have him put behind bars for a crime against community. But you know these things, there's no paper trail. Or maybe there is...

Meda Inc Bhd owes cleaning contractor RM200,000, resort to dirty tricks!

They make you do deliver first, after that they potong you

In my previous post, I mentioned the cleaning contractor who was brought in to quickly spruce up the Summit shopping complex, which they did a good job of it. (I know because I have seen the transformation myself).

The purpose at that time was to make the complex look good to draw in more tenants as the place looked like a slum especially on the upper levels. This would enable Meda Inc to demand a higher price for the property from potential buyers. (They were planning to sell it to raise cash to ease their cash flow problems, and they also needed money to keep their Kota Damansara project going).

This afternoon, I almost fell off my seat when a mutual friend told me over coffee that Meda Inc owed over RM200,000 to this contractor.

That's not all. Now, Meda Group MD Kenneth Teoh has sent his "operations manager" Wan to find faults with the contractor and the contract and is demanding a discount of almost 40% off the bill - after almost a year of work completed.

The contractor is outraged.

The thing is, if the contractor had truly not fulfilled their part of the contract, that would have come to light in the first few months of their doing the job. Why now???In fact, it was Meda who drew up the contract and stipulated the manpower requirements and job scope, and Meda had offered this contractor an extention of the contract after the initial 3 months.

It is so obvious to us all that Meda Inc is trying to create imagined complaints in order to get away with paying less for a job that has already been completed to satisfaction. This is their desperate move to force their suppliers and contractors to accept lower payments AFTER they have delivered.

What a stinking company.

Now, I get this uneasy feeling that soon they will come telling me that our products or services rendered were not up to scratch - almost a year after they have been delivered, rendered, used and consumed by Meda Inc and Summit Hotel Subang USJ.

Now I can empathise with that group of suppliers who kicked the door at Meda office the other day. I might have done worse.

Oh, I also hear that some big thing is going to happen at Meda Inc office soon. Just wait for it - it may be in the newspapers. And Meda Inc is going to be very badly affected.

Suppliers and contractors are not going let them get away with all this crap any longer. Over the years, there is now an army of very angry suppliers and contractors out there very furious with Kenneth Teoh.

Anyone out there, if you know of more bad experiences with Meda Inc or Summit Hotel Subang USJ, please email me or post them in the comments column. I hope to receive more information from all other suppliers and contractors who have been cheated by this Group. Of course, it must be as true and factual as possible, please. Thank you semua.

Fortune Court, Cabana closing due to vey poor business, hotel manager tak boleh

< Cabana club
< Fortune Court chinese restaurant

Poor management skills

Fortune Court, the 4th floor chinese restaurant in Summit Hotel Subang USJ that serves good decor with good food is struggling with the drop in business barely 20 months after opening.

This restaurant even enjoyed a good review in the 6th May 2006 issue of The Star. You can read it here: http://thestar.com.my/news/story.asp?file=/2006/5/6/central/14136893&sec=central

According to hotel insiders, the restaurant had been doing fine since its opening, until the middle of this year when their business began to falter. Now they can't even cover operating cost.

Cabana club, which opened only in October last year, is doing so badly but I am simply not surprised. There is word that Group MD Kenneth Teoh now wants to lease it out to his friends to operate as a girlie bar (yes, he will probably grease some state authority officials to tutp mata about the operation). There is also word that they are thinking of turning it into a Thai cafe.

On both outlets, it may be a coincidence, but there was a change of hotel management just before the middle of this year. I don't think it's a coincidence, from what I hear.

I heard that there were very ugly scenes of quarrels and political backstabbing in the offices. A new resident manager recruited by Kenneth Teoh was part of this scenario. Many key staff which include department heads in the F&B, sales, marketing, purchasing and front office resigned under very tensed and unhappy circumstances. Some of them said they were victimised and even harassed by the new hotel resident manager. Restaurant chef Ah Ken left shortly after the new resident manager took over from the general manager, who himself resigned shortly after resident manager joined the hotel.

This new hotel resident manager, I shall call him RS, is quite a hot-tempered and political guy.

When the former hotel general manager resigned, RS was quick to try to show off his colours. It is said that he made life so difficult for the former employees that they had no choice but to resign. RS then recruited newer people at lower salaries to replace those who left. He ordered cuts in purchasing costs, which resulted in a drop in the quality of ingredients used in restaurant food. The hotel also faced demands for cash payments from suppliers or else they would not deliver the orders. Beverage companies held back their beers and liquor because of unpaid bills.
RS tried very hard to please his employer Kenneth Teoh.

Hotel occupancy has dropped. Cabana, a nice place with friendly people and which has many regular customers from around Subang Jaya, was failing even before it could establish itself. The chinese restaurant was failing also. These must reflect poorly on the new hotel manager's ability to run the hotel outlets. He could not perform better for the hotel, but to be fair, it would be alright if he could just maintain it, he would have done a good job. Obviously he does not know how to market hotel outlets. This is a great pity, because I remember seeing a lot of marketing leaflets and promotional banners for the restaurant and the Cabana. My friends are among the regulars at these places. As a sales & marketeer myself, I know that it takes consistent effort and focus over a period of time to build up a strong customer base. They should not kill the outlets because these outlets do have good decor, good food and music, and they offer a distinct and attractive choice for the market. The fact that they are killing these outlets so soon is a sign that they don't know their business. They just don't know how to market their products.

My company has some bills with the hotel which they have not settled for almost a year. Their accounts department keeps saying "no cheque".

I am told that some suppliers for the chinese restaurant, Fortune Court, are still waiting to be paid. The contractors who did the renovation for Cabana, the sound system contractor, and the air-conditioning supplier are still waiting for their payments. The DJ has also not been paid. Drink suppliers are also very angry with the hotel for failing to pay their bills. At one point, Cabana staff even had to use cash to buy drinks and cigarettes from the shopping complex next door to sell to customers because their own stock at the bar ran out and suppliers refused to replenish. Even a former employee who left Cabana did not get his full salary.


Summit Hotel resident manager

The hotel resident manager RS is today still the hotel's resident manager, not yet a general manager. I don't think he will get his promotion. Group MD Kenneth Teoh is paying RS a resident manager's salary to perform as general manager. Either Kenneth Teoh thinks RS is not competent enough as GM, or he is simply abusing RS without RS realising it, or RS is simply too stupid to know that Kenneth Teoh is making a fool out of him.

Either way, the hotel is losing a lot of business. In my opinion, Kenneth Teoh is not competent enough to manage a Group business, much less a hotel. (I found out that he has an engineering degree from a UK uni, but then anybody with money can get a degree from kampung uni in UK even if he is not so bright). I don't think the hotel manager is can cut it either.

Shortly after he became the manager of the hotel, RS was alleged by some ladies (who used to work for Meda Inc) of some conduct not appropriate for his position. It happened in the hotel lounge Bar One. Group MD Kenneth Teoh knew about it, but he chose to cover it up.

I am wondering whether I should tell the whole story as related by the ladies, among whom is a lawyer.

Maybe I will....but if he settles our bills tomorrow I might tutup mulut.

Yes, it's true, Meda Inc Group MD use false invoices

This is fraud!

My Nov 10th post titled "Top Management Use False Invoices" was based on an account by Lily, who previously worked in the Meda Inc corporate office. I will not mention which department, but you can guess how she could have access to such information.

Yesterday I was at a mamak stall when I met another former employee of the Meda group, "HC".

"HC" confirmed that false invoices had been used to pay out monies to indviduals in the company, as well as outside. Sometimes, the accounts people have no idea where the monies go to because of the need to maintain a veil of secrecy about the transaction, possibly to protect the recipients. And that Group MD Kenneth Teoh himself was an active participant in this questionable practice. He often gave instructions on how he wanted it done.

If I were a minority shareholder holding Meda Inc shares, I would definitely demand a full external audit and have all paid invoices checked and traced. The group has been around for more than five years, I'm sure there are a lot to uncover. Paper cannot cover fire.

Investors & minority shareholders unhappy about Teoh brothers

In my previous post I told about the name change from Kumpulan Emas to Eco First, and about how investors are unhappy about the Teoh brothers who together are involved in Eco First and Meda Inc, and whose mismanagement led to severe losses and finally the sellout of Salcon. They also lost a furniture making company but I didnt know about that until now.

Here is the newspaper report:

The Star Online: What’s in store for EcoFirst with new MD
The Star Online > Bizweek
Saturday February 25, 2006
What’s in store for EcoFirst with new MD
BY ERROL OH
FOR a company whose market capitalisation has been more than halved since the start of last year, any major change usually brings hope to its minority shareholders. So it was for EcoFirst Consolidated Bhd when Datuk Clement Hii had recently bought a substantial stake and later became its group managing director. Hii's appointment on Jan 27 was part of a boardroom revamp that also included former academician Tan Sri Dr Syed Jalaludin Syed Salim taking over from Datuk Patrick Teoh Seng Foo as chairman. The latter is now the deputy chairman but retains his executive directorate. Before that, there was a name switch. This explains why, or some people, EcoFirst does not ring a bell.

The stock had been trading as Kumpulan Emas Bhd until Jan 20.
Seng Foo has been replaced as chairman of EcoFirst and is now now the deputy chairman.

However, the bigger changes at EcoFirst are still ahead. For one thing, the diversified group – it has interests in oil palm plantations, property, education and manufacturing – intends to venture into new fields. Biotechnology is one area.

The idea is to ride the government's push to build up the industry via the National Biotechnology Policy, which was unveiled last April. EcoFirst's immediate plan is to tie up with some Indian companies to produce herbal products for the domestic and foreign markets.

Says Hii, “The main thing is to focus on core businesses that will bring in money. The problem with EcoFirst is that it doesn't have a core business that generates a steady stream of income.”

This absence of sturdy anchor activities has led to losses in financial years 2004 and 2005. To make things worse, EcoFirst had to part with some valuable assets last year to lighten its debt burden. The disposals were done at depressed prices and resulted in EcoFirst relinquishing control of two listed companies, water engineering specialist Salcon Bhd and furniture manufacturer SYF Resources Bhd. It also reduced its stake in property player Meda Inc Bhd.
(Another listed company in the EcoFirst stable is education provider SEG International Bhd, or SEGi. EcoFirst has almost 26% equity interest in SEGi. Hii is also the chief executive officer of SEGi.)

At the start of 2005, EcoFirst (then still known as Kumpulan Emas) was trading at 27 sen. The shares are now just a little above the 10-sen mark. It's the kind of performance that frustrates shareholders, and there are many EcoFirst minority shareholders out there. It is a counter that has always had a strong retail following.

As at Dec 31, 86% of its share capital was in the hands of almost 36,000 shareholders. Its 30 largest shareholders accounted for only 34%.
Apart from Hii, the only substantial shareholders are Patrick and his brothers, Seng Kian and Seng Aun. The brothers' combined stake is about 12%.

New directions for EcoFirst
Since Hii only bought his 5% stake in November, the minority shareholders' displeasure was mainly aimed at the Teoh brothers. It is understood that this dissatisfaction bubbled to the surface at the company's annual general meeting on Dec 30, with shareholders demanding answers as to why the company has fared poorly. Such sentiments have also sparked speculation that the Teoh brothers are ready to leave the company. Says a corporate observer, “I think they're just tired of it all – the huge effort required to try to turn things around, and the growing criticism.”

Naturally, Hii's emergence as a substantial shareholder has stoked the rumour mill. He says he invested in EcoFirst because he believes that its diversified business base offers a lot of room for growth. He hints that he will increase his stake, either through acquisitions in the open market or via option agreements with the existing shareholders.

Hii says he invested in EcoFirst because he believes that its diversified business base offers a lot of room for growth. “In any case, EcoFirst has an attractive valuation, at the current market price. So, there is great upside potential. It's a matter of doing a few right things and putting a few things right,” he adds.

“There'll be a major revamp of our management systems and style, and we will pursue greater operational efficiency for our existing businesses. And we will aggressively pursue business developments in new fields.” He points out that there are many avenues to maximise the potential of the company's existing businesses. For example, the plantation division can be a major money-spinner because palm oil prices in India are higher due to the tariffs that shield the local industry. Subsidiary PalmTech India Ltd has a concession for contract farming with local landowners, who collectively own more than 280,000 hectares (ha). However, only 10,000 ha have been planted over the past five years. “To me, that shows not enough emphasis has been given to oil palm,” says Hii.

He adds that EcoFirst is talking to provincial governments in India to get new additional concession areas, not just for oil palm, but also to cultivate other cash crops and herbal plants (such as vanilla, aloe vera and jatropha, whose oil can be used to make biodiesel) for the export market. In addition, there are plans to transfer to Malaysia the expertise of the Indian biotechnology partners. EcoFirst has initiated discussions with Malaysian landowners on possible joint ventures for large-scale farming and processing of herbal products.

Are the Teoh brothers in or out?
Such plans may well be a reason for optimism, but some observers say investors are equally interested to know if the Teoh brothers will continue to be involved in EcoFirst.

When asked about the talk that they are exiting the company, Patrick says, “Who told you that? We are still substantial shareholders. We'll each have our role. Datuk Clement will run the company, while my role is more at the board level. “It's just like how it was at SEGi. We don't want to meddle in the operations of the company. It's a move towards separating the ownership from the management of the company. That's the way it should be. Look at Salcon, although there has been an ownership change, the management is still in place.”

Hii recognises that the negative perception about EcoFirst is linked to how people feel about the Teoh brothers' handling of the listed companies in the group. He, however, insists that in the four and a half years that he has run SEGi, the brothers have seldom interfered in management and operational matters. The question of whether the Teoh brothers will stay on at EcoFirst may become irrelevant if Hii stamps his mark at the company.

Those who know him from when he was appointed as SEGi CEO say he is decisive and hands-on. A former senior journalist, Hii had ventured into the education business and became the SEGi boss in 2001 after it had acquired his Kuching-based institute. “He is a fast learner, and at SEGi, he has picked up a lot about the corporate world. He's a good choice for EcoFirst,” says a CEO of a listed company who is familiar with the EcoFirst group.

There is the worry that Hii may be spreading himself thin by leading both EcoFirst and SEGi. He maintains that he can do well at both jobs, with the support of the management teams of both companies.

“I continue to be involved in SEGi because education is a personal passion as well as a professional pursuit. Over the past few years, my team and I have embarked on various ambitious projects to move SEGi forward. We are moving into new market segments and we are beginning to show results despite some initial setbacks.

“I am determined to ensure that these projects are realised and that they bear fruit in due course.” Another challenge is that Hii has to demonstrate that his strength is not just in education, and that he can run a diversified company.
He says, “I have been in business for over 20 years. I hope people see me as an entrepreneur, an enterprise builder. I believe that whatever business we're in, innovation is the key to success.”

In any case, it may not be a long wait to see if Hii has what it takes to restore confidence in EcoFirst. “I don't expect a long honeymoon for my management team and me. We have to add value to our current businesses and bring in new core businesses to generate a steady stream of revenue,” he adds. “We have to move fast. We give ourselves a maximum of two years to show some positive tangible results. But we should within a few months, and not a few years, make significant progress in developing new businesses.”

Click on the following links to read The Star report: http://thestar.com.my/services/printerfriendly.asp?file=/2006/2/25/bizweek/13462600.asp&sec=bizweek
The Star Online: What’s in store for EcoFirst with new MD
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Meda Inc Group MD breaks his word again, and why?

Can you trust this guy?

Late last year at the Summit Subang USJ shopping complex, Fajar, an anchor tenant, was giving up and moving out. Many other tenants were teaming up and suing the complex management, and they refused to pay management fees and utility bills. The shopping complex was like an air-conditioned pasar malam - untidy, messy and many shops looked simply ugly. The building was badly maintained, its lifts often broke down, and there were so many empty lots it was like a ghost town. Cars were stolen in broad daylight. The crowds were not going there.

They were seriously facing cash flow problems at Group level. They also needed money to keep their Kota Damansara project afloat (which they placed under their private company called Casa Andaman Properties Sdn Bhd - don't we have any regulations regarding conflict of interest?)

After letting the Summit shopping complex rot for so many years, and ignoring the need to manage and promote it professionally for the tenants, Meda Inc Bhd decided to give it an urgent facelift which they hoped would attract new investors to buy the property. They were in a hurry to raise the cash.

They then brought in the Summit hotel management team to execute the plan.

The new team brought in a new cleaning contractor to give the place a new shine, and changed the security arrangements. They painted the basement car park and installed additional lamps to brighten the areas. Meda Inc could have done all these long time ago but they didn't do it - they were not competent enough. Besides, some long-term contract deals were handled by the Meda directors' relatives!

To be fair, the new (hotel management) team did make a big difference to the place within the few months of taking over.

By the way, I have met the new cleaning contractor - they, too, have not been paid even after they completed their six-month contract. The promises made by the new team to pay contractors promptly was not upheld by Kenneth Teoh.

(There seems to be a pattern here. As not many suppliers are keen to submit quotes to Meda Inc, Kenneth Teoh often asks his managers to bring in their contacts. These contacts often extend goodwill and favourable terms to Meda Inc because of these contacts, but in the end, most of them got played out by Kenneth Teoh.)

Kenneth Teoh decided to call a tender to upgrade or change a new car park system at the complex. Two suppliers were eventually shortlisted and asked to give presentations in the presence of Kenneth Teoh and his brother Dato' Patrick Teoh. Kenneth Teoh personally negotiated for the lowest price from a supplier, and the award finally went to a company which I will call STech. The Purchase Order was then issued to STech. I was told, its final total price was way below RM700,000 - the best price among all the bidders.

But STech could never get started on their installation work which was to have begun in December.

Meda Inc had hired a new operations manager by the name of Wan. In the many months following that P.O., STech was given the run-around by Wan who kept postponing the installation dates and delaying the payment of the required deposit. Meanwhile, STech was keeping all those equipment ready in their warehouse. They even paid a deposit to their installation subcontractor.

Six months later, while STech was still waiting for clearance to start installation, Kenneth Teoh sourced for another supplier.

STech made numerous attempts to meet again with Kenneth Teoh, but he declined. He did not even have the decency to face his supplier to try to settle the matter amicably. No apology, no explanation.

Kenneth Teoh then brazenly awarded the car park equipment contract to another supplier which I shall name ScanP. The total price of the equipment? Over RM700,000. It was almost RM100,000 more than the first supplier.

All this while, Meda Inc Bhd was under severe financial strain and cash flow pressure, and unable to pay its hardworking, reliable and patient suppliers. Yet, Kenneth Teoh would splurge almost an extra RM100,000 on a new car parking system.

Two questions arise from this incident:

1. What is his integrity worth? Can anyone trust that his signature on an agreement is binding?

2. Why would Kenneth Teoh want to spend almost an extra RM100,000 more for a car park system, especially since they are tight for cash. What is there to gain from doing this? What's the purpose of this whole exercise? What was his motive?

For question (2), I think we can safely guess where the surplus money go to.

Some of his personal friends who hang out with him told a management staff that Kenneth Teoh is the kind of man who makes an agreement with you today and breaks his contract the next day.

Lesson to learn: You can't trust Kenneth Teoh and his promises. You can't do business with Meda Inc.

My dad is in hospital, I need money to pay medical bills

My dad is in hospital again.

I am hoping to collect the commission from my sales to pay for his medical bills. I work bloody hard for my money the honest way.

I have to go now. But I don't know where to get the money to pay his hospital bills.

The big bosses at Meda Inc Bhd are getting richer by robbing the poor. Something very drastic must be done about them.

When I come back, I'll tell you about the deal where Kenneth Teoh signed the purchase agreement and then backed out. This is one businessman you really really cannot trust.

Walking The Talk On Integrity

The Sunday issue (12 Nov 2006) of Sunday Star featured an article titled "Walking The Talk On Integrity".

Good timing.

This blog is largely about the integrity - the lack of integrity - of corporate people, namely the big shots at the publicly-listed Meda Inc Bhd.

So far, it's about Meda Inc because it's got one of the worst reputations. It's about Meda Inc, and Summit Hotel Subang USJ, because they promised my company prompt and hassle-free payment before we delivered our products and services. After that, they go back on their word.

In the article, Mustafar Ali, deputy president of Malaysian Institute of Integrity, talks about the need for integrity in our way of life. He talks about integrity in the police force, in government service, and among politicians.

Talking about politicians. Do you know that the eldest brother of Meda Inc Group MD Kenneth Teoh is Datuk Patrick Teoh? Datuk Patrick Teoh rubs shoulders with MCA politicians, I am told. Very often, the Summit Hotel Subang USJ have hosted functions and events with MCA bigshots. Is it because of their strong connection with MCA - being part of BN - that people such as Group Managing Director Kenneth Teoh freely indulge in questionable corporate activities, fraudulent deals and unethical practices without fear of prosecution? Don't tell me the MCA people are not aware of Meda Inc Bhd's poor reputation. Next time I will vote DAP, I promise you. It may not be MCA's fault, but they are also guilty by association. We need politicians of higher calibre and moral standards to run this country. Malaysia Boleh!

I have a suggestion for Mustafa Ali: for the next National Integrity Day, aim for Corporate Integrity, especially among PLCs. PLCs depend on public subscription of their shares to fund their business operations. But PLCs such as Meda Inc Bhd is abusing the system for their owners' gains at the expense of their shareholders and stakeholders. If possible, implement a ranking system for all PLCs on their integrity and payment track record for the public to see. This should be very effective in discouraging abuses and malpractices among PLCs. It is harsh but necessary, because you are dealing with cunning crooks here.

The creation of wealth starts with the corporation. Dirty corporations cheat small suppliers. Dirty corporations pay corrupt polticians to push their policies that benefit these corporations. Dirty corporations get away with breaking company laws because they have the money to pay corrupt officials. Dirty corporations use their money (belonging to suppliers!) to drag and delay expensive court cases until plaintiffs who dont have the financial muscle give up pursuing their lawsuits. Dirty corporations are the source of all corruption. Dirty chiefs of corporations are evil and must be jailed for a long long time so that they cannot corrupt and harm society. Dirty chiefs of corporations such as Meda Inc's Group MD damage Malaysia's international image.

Here is the article, in case you didn't read it. To download it to your computer, right click and select "Save Target As".

New Tenant Is Suing Meda Group MD Kenneth Teoh

Sue him!

In my Friday 6th November post, I mentioned that Meda Inc is busy dealing with a string of lawsuits from tenants.

On their website, you will find their Summit complex (now they call it The Summit Subang USJ) newsletter which claims that they are 95% tenanted.

As I tell more of my friends about my blog, my friends' friends are stepping forward to offer their information to post on my blog.

I just met with someone yesterday in Shah Alam, another ex-Meda Inc management staff.

He tells me that a new tenant, an IT Zone tenant which took up quite a big space in the complex, is now suing the Group MD Kenneth Teoh for breach of promise / failure to deliver on his promises.

What is interesting is that this tenant, which set up shop only end of last year, is taking Group MD Kenneth Teoh to court in his personal capacity. The dispute is over the promises that the Group MD himself made to the new tenant during the negotiation stage which he did not fulfill.

This may not be the only story about the Group MD's integrity, or his lack of it.

I was also told he went back on his word even after he had signed contractual agreements and purchase orders. I will tell you about this other incident in my next post.

They will let Meda Inc Bhd sink. Many suppliers are suing them.

They are planning to dump Meda Inc...after ripping it off

A few more minutes and I will be leaving the office.

Azmi called to say our gang is meeting up in Sri Hartamas. He knows how ***king pissed off I am with the Meda Inc for not settling our invoices for so long. He has close friends who often meet up with people who work in Meda or one of the other companies.

Insiders say the owners are planning to let Meda Inc run down. It has very poor reputation which they lack the ability to salvage. Generally investors are also not keen on this counter. They may be running out of suppliers and contractors to "cheat". They are feeling the burden.

Azmi said they are putting their efforts and money - funds from Meda Inc, and money due to suppliers - into developing a very big project in Kota Damansara. This project will include condos, shopping malls, university, houses and so on, approx RM800 million worth.

But, surprise surprise, it is not a Meda Inc project.

This project is placed under another private company which the Teohs have set up, called Casa Andaman Properties Sdn Bhd. That's where the money is being pumped into.

On the 18th floor of their office block Menara Summit, you can see a lavishly decorated Casa Andaman Properties Sdn Bhd office. That's how they are using some of your (investors) money and my company's money which they owe us.

These people have failed their directors' duties. They collect their generous monthly salaries and bonuses from Meda Inc, but they place good and profitable projects under their own personal private companies. So, what have the owners and directors done for the good of the company??

Very soon they will dump Meda Inc. Then they will list Casa Andaman on the Bursa. Different company but the same crooks. (see below)

Azmi said he is sure they are using Meda money to finance the project. Many banks have pulled back their credit lines from Meda Inc because of their poor financial conduct.

As I said in an earlier post, Meda can be considered a bankrupt company.

Inside informants told Azmi that Meda Inc is busy facing a lot of lawsuits - from suppliers, contractors, tenants and customers.

Now I am really worried. They have not settled our invoices amounting to more than RM50,000. We are not a big company, how can we absorb such a heavy loss if they really sink? And my little bit of commission is in there, too!

Same thing at Kumpulan Emas

South City Plaza at Seri Kembangan

Early this year, Kumpulan Emas which operates South City Plaza and is also owned by the same people, changed its name to Eco First. When the reputation gets worse, they abandon the company or change its name. It had been badly managed and lost hundreds of millions of ringgit. (I think it's more likely that the money went somewhere else. How else did they get development rights for Kota Damansara, which is a very big project costing almost RM800 million?) In a report in The Star dated 25 Feb 2006, the Teoh brothers had sold down their stake to only 12%. By then, they have already sucked the company dry. Meda Inc may be the next victim.

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.]

This Is Criminal Breach Of Trust!

The Summit shopping complex is managed by a Meda-owned company called Meda Complex Management Sdn Bhd. Meda Complex Management Sdn Bhd (MCM) is in a major legal battle with the tenants & shop owners in the complex. MCM is suing the tenants and shop owners for not paying for utilities and other fees for many years. The tenants and shop owners then formed an association to challenge MCM for mismanagement and failure to deliver on their promises. The amount involved is close to RM1 million.

Besides mismanagement and failure to promote, one of the major complaints against MCM was that MCM created so many little stalls in the open spaces to fill up the lower 2 levels to increase their revenue. But these little stalls turned the shopping complex into an indoor pasar malam, and ate into the business of the shopowners and their tenants. Business for the shopowners and tenants were already bad since it opened. The little stalls made it worse. At the same time MCM did little to attract customers to the complex. Frequent robberies, snatch thieves and cars stolen in the car parks created a very bad name for the place.

There was a major restructuring in MCM recently. It could be because they were prepared to lose the legal case.

The Meda Inc owners created 2 new supply companies to provide services to MCM. One was called "Superforce Security". The other one is a labour contracting company.

Superforce Secuirty was to be headed by MCM's former general manager & director Mr Kong.

The plan was for Superforce and the labour company to provide services to MCM at grossly inflated prices so that big profits will be retained at these two private companies while MCM is left to become financially crippled. For example, XXX Security offer their services to Superforce at RM5 an hour. Superforce will quote MCM the same service at RM12 an hour. False quotations will be submitted to MCM to create the illusion of an open tender. No other company will have a chance of getting the deal except through Superforce. The labour supply company provides all sorts of cleaners, guards, etc for Superforce and MCM. This scheme applies to all other properties owned and managed by Meda.

With this scheme, the Meda owners are able to bleed the main company that are supported by public funds. The losers are the public shareholders and suppliers. The winners are the owners as they pocket the profits on the side. Many of the shareholders and directors of these subsidiary companies are actually proxys for the Meda owners. Meda Inc is a Bursa company with a web of smaller subsidiaries, whose shareholders and directors (mostly) are merely lending their names to the owners. Even the chauffeur of the owner has his name in some of the companies. Many of these companies are not officially listed as Meda Inc subsidiaries. This is how they suck out the money into the Meda owners' pockets. That is how suppliers and contractors are cheated.

This scheme applies to all other properties owned and managed by Meda, such as Summit Bukit Mertajam (under another Meda company ZKP), South City Plaza (owned by Kumpulan Emas* but they are the same people) etc. A lot of RM to siphon out into their pockets.

If the association of shopowners and tenants in Summit complex win the law suit against MCM, MCM may claim that they have no money to pay damages. MCM also owes a lot of money to other suppliers and contractors. They owed almost RM1 million to TNB. Recently they had to pull funds from the other companies in the group to pay the bill when the TNB technicians went to the complex and threatened to cut off the electricity.

It seems to me that the owners are deliberately getting their main companies into heavy debt, but they are making million-ringgit profits on the side. As Group Managing Directors and holding directorships in so many companies within the group, they are still receiving their multiple fat paychecks every month.

It is sickening to see these type of fraudulent acts and criminal breach of trust committed by these unscrupulous people.

If Pak Lah is serious about cleaning up corruption, he should start dealing with corporate malpractices, corporate fraud and corporate CBT first. This will start a culture change. It is good for our country. It's probably easier than dealing with his UMNO colleagues. Malaysia Boleh.

(Footnote: The Summit complex has now removed all the little stalls and booths to make the place look better. According to my sources, this was part of their scheme to attract a new anchor tenant because Fajar has moved out in December last year. Early this year, the owners tried to spruce up the place so that they can fetch a higher price for their property as they wanted to sell it off to potential investors. But they want to retain management of the complex through MCM. As you can see, it's very profitable to be a "management company" for your property. But as far as I know, they could not convince anyone to buy it at their asking price. I heard that even EPF was considering buying it. But the deal fell through. Maybe the amount of kickback the owners offered was not enough for the officials to blind them to the low property valuation.)


[*Kumpulan Emas lost so much money that small shareholders forced the chairman Dato' Patrick Teoh who is Meda Inc Group MD Kenneth Teoh's eldest brother, to give up his chairman post and become vice-chairman. He is replaced by Dato' Hii of SEGi. But they are all part of the whole gang of companies. (I am not saying Datuk Hii is like them. I have not heard anything about Dato' Hii, who is doing a good job with SEGi)].

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.

Summit Hotel Subang USJ Fail To Pay Suppliers. Suppliers demand cash on delivery only.

Just went to Summit Hotel Subang USJ to check about payment. It's a waste of time. No payment.

Met some people I know. We had teh tarik and nasi lemak, and our conversation veered toward the hotel.

Summit Hotel Subang USJ is in very bad shape.

Suppliers have stopped supplying to the hotel because of many outstanding invoices. Important supplies such as food stuff and beverages have to be paid in cash, otherwise the supplies will not be delivered.

I remember not long ago, a bar manager told me that the hotel even ran out of beer at their pubs because they owed too much money to the beer suppliers. The waiter in the cafe told me some items on their menu are not available, because the ingredients are out of stock. The hotel failed to pay them.

I also met Frank, my former manager and ex-colleague, who just had lunch in the chinese restaurant. The fish was not fresh, the quality has dropped. According to Frank, the chef called Ah Ken (I never met him before) was a very good chef, very friendly to his customers, and the food was very good. But Ah Ken has left. The hotel has been cutting back on costs, buying frozen fish and cheaper ingredients. So the food standard has dropped drastically. This shows the quality (or lack of) of the management that they hire to run the hotel. Cutting back on this type of costs will surely make them lose more customers. Customers go there to eat their delicious food, not to look at the tablecloth. I think maybe they hired frozen brains to run this hotel.

I have more news for you in my next post.


Update on 10th Nov:
Just heard that the chinese restaurant (Fortune Court) which used to generate revenues of RM90K until early this year, is recently only collecting no more than RM30K per month. It may be a coincidence but recently they hired a new hotel manager to run the hotel. Heard that there were massive resignations of key staff when the new fellow took over. That's what happens when you hire a frozen brain to manage your company. The biggest frozen brain must be the owner who is also MD of the group.

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 http://www.meda.com.my/), 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.

Time To Expose This Company Meda Inc Bhd & its Summit Hotel Subang USJ

Meda Inc Bhd is listed as a property counter on our Bursa Malaysia Securities Bhd mainboard.

This blog is a journal of some of the most interesting things I hear about this business group. In fact, I myself have done some business with them, and I have regretted it.

For a company with a public listing, their business ethics is extremely bad.

If you have friends doing business with them or supply anything to them, be warned. You probably will not get paid.

For those who have bought shares in this company, good luck to you.

Meda Inc Bhd owns the Summit Hotel Subang Jaya, and I found from their website that they also own the Summit Hotel Bukit Mertajam.

I came to know about this group when last year some friends asked me along to a pub called Cabana, which is a Balinese-style cafe-cum-drinking-bar located just in front of Summit Shopping complex, next to Summit Hotel, at Subang Jaya. Nice place although a bit small, the music good. Service was not that good, but the manager was very friendly. Nice people running the place, I must say.

I made many friends there, some were also the Summit Hotel suppliers. I also met some who did business with Meda Complex, who were there to chase for payment.

Through meeting some of these people, I also met some hotel executives. Being in sales, naturally I hoped to build a business relationship with them. I have heard many people warned me before that it is a big problem collecting payment from Meda group, and the Summit Hotel, because of their very poor business practises. But I was keen to impress my boss, so I try. Anyway, good sales will look good on my performance evaluation. Payment is a problem far distant from my mind. Who wants to think so far ahead, right?

In the weeks following that, I managed to clinch some deals to supply our products to the hotel and to Meda complex management (Meda Complex Management was run by a Mr Kong, but it is owned by Meda Inc).

That was around December last year.

Since then, I hear from some of my acquaintances who have had business deals with them, many things have happened at the hotel and the Meda complex.

The payments due to us, promised to be settled within 90 days, is still outstanding today. It's almost a year now.

Through my network of friends and business acquaintances, I have since heard a lot of things going on in the Meda Group. And I will share them with you as I pick up more from them.

I am sure this blog will be of interest to all business people dealing with the Meda group, all the minority investors who hold Meda shares, and even our SC if they have the manpower to investigate this company.

If you have any other insider stories to share, please write them in the comments. I will check with my friends and network to see if I can add more comments.

More information to come.