MEDA INC BHD IS DOOMED!

How did ANDAMAN GROUP SDN BHD come about? Who's the REAL power behind all that's happening in Meda Inc Bhd? Is Meda Inc Bhd doomed?

On 10th Nov 2006, I mentioned about their grand plan to let Meda Inc Bhd sink under heavy debt, together with the lenders, suppliers and others to whom Meda owes money. And their sneaky scheme to put up their new company Andaman Group for listing on the Bursa.


"A Friend" gives us a closer look at the hanky-panky in Meda Inc Bhd...

"Dear Wendy....you were wrong on one count. The Cova project does not come under the Meda Group, so the sales do not goes to Meda. Most probably you do not know the history of the Andaman Group. Let me set the record straight for you.

Basically Meda went public because they need funds to expand. Meda have been listed on the main board for more than five years and with the funds from the listing you would expect the company to have expanded and have more projects. If you look deeper the company have no new projects at all. The current projects are the very SAME projects that they have when they got listed.

So one would think that the management of Meda and the Directors are sitting on their fat butts doing nothing as there were no new projects. ON THE CONTRARY. TEOH SENG AUN HAVE BEEN VERY BUSY USING THE RESOURCES OF MEDA TO IDENTIFY NEW PROJECTS. The marketing and project department of Meda have been scouring around for viable projects and they have identified two such projects namely One Subang and the Cova, Kota Damansara. But instead of injecting these projects into Meda he took it private.

He formed the ANDAMAN GROUP using his brothers in law as a front. The brothers in law are Alex Wong, William Wong and Joshua Wong. In fact he is grooming Alex Wong to head the group. He went further to ensure the Cova project is a success by entering into an agreement with SEGi to rent the apartments from them so that the company can provide guaranteed returns to the purchasers. The question here is why Teoh Seng Aun(TSA) did not inject the projects into Meda. IT IS VERY SIMPLE. HE WANTS TO ENRICH HIMSELF FURTHER AND HIS FAMILY TOO.It was also rumored that TSA siphoned RM8 million from Meda to form the Group and till today have not repaid the money back to Meda.In fact the Cova project was obtained through the contacts of Ong Bok Siong who is very close to the people in PKNS or PNSB. So why is Ong Bok Siong allowing TSA to take the project private instead of injecting into Meda? Has Ong Bok Siong no loyalty to Meda which is paying his fat salary and giving him a luxurious car and a driver? Is he not responsible to the minority shareholders who expect him to perform his duties?

Now we have to ask the other question on what will the authorities do to the Board of Directors of Meda who sit back and allowed TSA to abuse his power as the majority shareholder to misuse the resources of Meda to enrich himself instead of resolving the financial problems of the company?. Are the Directors not guilty of dereliction of duty? What about TSA? As the major shareholder, does he have the authority to determine the direction of the company? What business have he to manage the company? Are all the Directors just figureheads?

The authorities would want to have evidence to investigate Meda. The evidence are actually there for everyone to see, the abuse of power and the arrogance of Teoh Seng Aun, who thinks he can get away with it and that the authorities are IMPOTENT. Actually the MOTHER of all arrogance of TSA is to have the Andaman Group located on the 18th Floor of Menara Summit, which was the Directors' floor of the Meda and KEB group where at one time ALL the Directors were located. WHY? Because TSA sits on that floor and he wants his pivate company to be located there so HE CAN OVERSEE ITS OPERATIONS. Next are the transfer of KEY PERSONNEL FROM MEDA. Robert You the COO was formerly with Salcon under Kumpulan Emas, so he cannot be counted. What about the Director of Project Charanjeet Singh who was formerly the Senior General Manager - Project of Meda. Then there is the Senior Manager - Marketing Lau Hon Chong who holds the same position with Meda. The Sales and Administration Manager, Iris Chai, was formerly the Assistant Sales and Administration Manager of Meda. Isn't the transfer of these key personnels a sure sign of abuse of the public listed company?

The final question to be asked is WHAT ARE TEOH SENG AUN'S PLANS FOR MEDA? NOTHING!!!!!. Meda is too heavily in debt to a tune of more than RM200 million to be able to save. He will allow Meda to die a slow and painful death. Meanwhile he has formed the Andaman Group and he has grand plans for the group. He is talking about a billon dollar JV in China and more exciting projects. Then he WILL LIST the Group again. DEJA' VU?"

Wendy says:
"It will be the same story all over again. Just like Kumpulan Emas (EcoFirst) before, Meda Inc Bhd now and Andaman Group in the future."

Here's the news report about the RM1billion JV in China. There's no way a newly-formed Sdn Bhd can suddenly find all that money to take on an expensive RM1Billion project unless the funds are improperly obtained.

The Directors should be taken to court for dereliction of their duties, professional negligence and possibly even conspiracy to defraud minority shareholders...

MEDA INC BHD OWED TENAGA RM 1 MILLION

This is not the latest news, but I still have to tell you about this.

Sometime last year, Meda Inc Bhd - Summit Shopping Complex Subang USJ - owed Tenaga about RM1million in overdue electricity bills. One fine day, the Tenaga technicians went to Meda Inc Bhd head office to demand payment or else they would immediately disconnect power supply. The Meda accounts office had to panic and rush to look for the money before they could get the cheque out for Kenneth Teoh to sign before handing it over to the Tenaga people. The bills were overdue for quite some time - just like all those bills owing to suppliers and contractors.

If the power was cut, the whole Menara Summit and shopping complex would just stop functioning. Then the shopping centre owners and tenants will sue Meda Inc Bhd again for causing loss of business.

I notice the owners love to give very grand names to their buildings. I also heard they wanted to call their property "SUMMIT CITY" but the authorities did not approve. Defiitely it will be grand and impressive, such a name. The Teoh brothers would be going around feeling so proud about their status as owners of such a prestigious "CITY".

I wonder how they can go home each day feeling so proud about the debts their companies owe to banks, suppliers and contractors.

Maybe they should test their entrepreneurial skills again by joining the Nescafe KICK-START TV Show (TV3, Saturdays, 7pm). They will be lucky that they don't have to face Donald Trump ("The Apprentice") who enjoys telling people "you're fired!"



"EN. TEOH, YOU'RE FIRED!"

MEDA COMPANY OWE CIMB BANK RM55MILLION

ZKP under receivership. What about other outstanding debts?

As of now, we know that ZKP going under receivership is the result of action taken by CIMB Bank Bhd to recall its loans to the Meda group.

Meda Inc Bhd had in 1999 & 2000 borrowed heavily from CIMB Bank. The loan was not secured against any assets but based on the credit standing of the company. (Unbelievable! I wonder who approved the loan to this group?).

However, it is well-known in business circles that many credit lines had been withdrawn by various banks in the last few years. Now Meda Inc Bhd has been unable to even pay the interest on the loan taken from CIMB Bank. I think it could be due to one or all of the following factors:

1. CIMB has lost its patience with Meda Inc Bhd because of frequent missed payments.

2. The reputation of the group has also been in the tong sampah for so long. CIMB can no longer trust Meda Inc Bhd to honour its repayment obligations.

3. Meda Inc Bhd is already struggling under a very huge pile of debts due to its suppliers and creditors who are sueing them relentlessly. Looking at Meda under so much debts, CIMB decided to take action first before others lock up Meda's assets through winding up action.

4. Its Cova projects in Kota Damansara are not selling as well as they claim. There are not enough money coming in to pay for the debt repayments to CIMB. (Remember "A Friend" who wrote to tell us that Meda property sales were mostly scams?)

5. Its other projects are also not doing as well as they claim. For example, the Semantan Avenue Suites project which was completed last year is doing badly.

ZKP Development Sdn Bhd, being wholly owned by Meda Inc Bhd, owns and runs the Summit Shopping & Hotel complex in Bukit Mertajam. According to Meda Inc Bhd accounting, the Bukit Mertajam property is worth RM107million.

But whether they can actually get someone to pay RM107million for that property is big question. The complex has been badly maintained and car thefts and robberies there are frequent. This lowers the value of the property. If nobody wants to buy the property, it is worth...RM zero.

The amount outstanding owing by Meda Inc Bhd to CIMB Bank is RM55million. So ZKP is placed under receivership so that its asset, the Summit Shopping & Hotel Complex Bukit Mertajam, can be sold and the money from the sale be used to pay the amount owing to the bank.

Meda Inc Bhd's financial problems are well-known. But the owners have no financial problems. They still live in luxury houses, go for expensive holidays and drive the biggest and latest BMW cars. In fact, they own numerous companies, many houses and many cars. Perhaps, it is more accurate to say that their PLCs are in financial trouble but they personally are rich beyond imagination. Have the owners been manipulating a complex scheme that enrich their overflowing personal bank accounts, while their companies which are publicly subscribed, become financially strapped? Are the owners deliberately enriching themselves by not paying their suppliers, contractors and lenders? Just think about how much money has been going through their companies over the years - Meda Inc Bhd, SEGi, EcoFirst Consolidated (formerly Kumpulan Emas). Easily, several RM BILLION!!

It is embarrassing to be put under receivership, especially if you are supposed to be a big businessman who owns several PLCs, and especially if you a Datuk. It is a loss of face for Chinese businessmen. Maybe the Teoh brothers are either really in very deep financial trouble, or they have very thick skin. Probably both.

They should know that CIMB Bank would take this next step. They should also know that their property will not get a good price if it's sold in a receivership. They could have mortgaged it for a loan to pay off CIMB to avoid this bad and embarrassing publicity. Probably no other bank wanted to get involved with Meda Inc Bhd. Afterall, their bad payment reputation is already well known in the market.

And probably because no one wants to pay RM107million for it. Also, the book value is probably "cooked" to a higher value to make it easier for the group to get credit facilities from other unsuspecting finance companies.

Meda Inc Bhd most likely will not get close to the "book value" for the property. In a receivership sale, buyers will only be interested if the price is really really cheap. So, Meda Inc Bhd's property is now in the market, like pasar malam sale.

It will be interesting to see how much CIMB Bank can get for the ZKP asset. I think the bank should just offer to sell it for RM60million. This is more than enough to cover the loan. If Meda Inc Bhd disagrees, then the Teoh brothers should jolly well go out there and try selling it for more themselves, which I seriously doubt.

And what's going to happen to the money owed to suppliers and contractors? Maybe it is time to group together and sue Meda Inc Bhd for payment before the company runs out of cash and assets.


Action against Teoh brothers

Legal action should also be brought against the major shareholders personally -Dato Patrick Teoh,Teoh Seng Aun and Kenneth Teoh - who as group chairman, managing & executive directors drawing huge salaries and bonuses, should be personally held accountable for their business decisions and the way the PLC is run. Where they have caused the group to go under a mountain of debt and become insolvent through negligence or incompetence or especially fraudulent practices, they should be made to personally pay for the losses of the company. Shareholders who buy Meda Inc Bhd shares should not be made to suffer for the troubles of the company caused by these corporate crooks.

Suppliers are already so tired and fed up with all the rubbish from Meda Inc Bhd, they don't really care one way or another as long as the Teoh brothers get their just desserts. Punish them severely, yeah!

SYABAS!

LATEST: MEDA COMPANY UNDER RECEIVERSHIP!

Summit shopping & hotel complex, Bukit Mertajam

ZKP Development Sdn Bhd is bankrupt.

This news just came in from another reader through the email.

ZKP Development Sdn Bhd is under receivership. It is bankrupt, unable to pay its mountain of debts to its suppliers, contractors and other creditors.

Meda Inc Bhd owns ZKP, and ZKP owns the Summit shopping and hotel complex in Bukit Mertajam.

Auditors have been busy in the offices there. Staff have been leaving in numbers. Management staff of the Bukit Mertajam hotel are also trying to get out as fast as possible.

That's bad news for the suppliers and contractors. They have a huge amount of bills waiting to be paid. Will the owners sell the property and use the proceeds of the sale to pay off its creditors? Frankly, I doubt it. People in the business circle familiar with Meda Inc Bhd say the Teoh brothers are "dirty" people well known for their twist and turn and underhand methods.

Maybe Meda Inc Bhd already made sure that all the cash and assets of ZKP are moved out of the subsidiary first, and after that, deliberately let ZKP become insolvent so that ZKP don't have to pay the creditors? The suppliers and creditors will be the ones who suffer while the Teoh brothers' bank accounts fill up with another ten or twenty million ringgit. Who knows? This is the legal way to rob their suppliers' money.

Long ago around 1998, when the complex was just completed, Meda Bina Sdn Bhd (MBSB) and Meda Property Services Sdn Bhd (MPSB) - both Meda Inc Bhd's fully-owned subsidiaries- were dragged into a lawsuit by their contractor Tap Construction Sdn Bhd. Typical of the Meda Inc Bhd Teoh brothers, they didn't want to pay the contractor, which resulted in a long court case that eventually ended with the Meda Inc Bhd companies ordered to pay Tap Construction RM 36 million to settle. But not surprise, Meda Inc Bhd companies claimed not to have the cash to pay, so Tapcon agreed to have the Bukit Mertajam property transferred to ZKP, and the amount owed to Tapcon probably converted to shares or paid in instalments (I cannot confirm this part but I think that's how they did the deal.) Eventually, ZKP became 100% fully owned by Meda Inc Bhd.

Last year, ZKP sued its anchor tenant The Store, but lost. ZKP was ordered to pay legal costs for The Store. ZKP then fought AMAsurance Bhd for RM 6 million in another dispute, but its case was thrown out of court.

Instead of embarrassing themselves in court time and time again, Meda Inc Bhd owners - Kenneth Teoh, Teoh Seng Aun, Dato Patrick Teoh - should have just saved their lawyers' fees and pay their suppliers instead. This would have created much goodwill for them, rather than be cursed by so many people.

Another court case involving a Meda company and directors

This month, another subsidiary Meda Development Sdn Bhd and some directors will face legal action in court from Companion Park Sdn Bhd for owing money amounting to RM3.5 million.

I am sure Meda Inc Bhd's lawyers really love this customer because it gave the lawyers so much business. As you can see, all those lawsuits did not end in favour of ZKP/Meda Inc Bhd. I'm sure it's not the lawyer's idea to fight or sue when Meda Inc Bhd has no grounds, although it makes the lawyer richer. These are just dirty tactics by the Teoh brothers to force its suppliers and contractors to agree to accept less than the outstanding sum. But they can't bully everybody.

If you have any more information, please send to me. Wendy truly appreciate all your support.