My last post on 22nd Feb was an email from "A Friend" giving us a closer look at Meda Inc Bhd operations. We are told that the real power behind the whole thing is actually Teoh Seng Aun, who does not want to hold any directorships but have substantial shares in all the sister and brother companies. "A Friend" tells us that TeohSA (Teoh Seng Aun) is the one pulling the strings, the main man behind the whole setup.
"A Friend" also tells us that Meda Inc Bhd's so-called "profits" and sales turnover are in fact almost non-existent, because the Teoh brothers (owners) are the ones who buy up their own properties through shell companies, pay only 5% of purchase price, but register the sales as 100% on their books. This creates the illusion that Meda Inc Bhd is selling their properties well, when in fact, it is not true.
This kind of bullshit gives the wrong impression to investors who buy up their shares in the market, making their share price go higher than its true value. Kenneth Teoh and his brothers, all of whom hold large portions of shares, can then use the false market price to mortgage their shares for higher financing and credit lines.
We all know that many credit lines have been pulled back, because Meda Inc Bhd could not meet their regular payment requirements to the finance companies and banks. "A Friend" says this is why Meda Inc Bhd have no cash to pay suppliers. Only the directors/owners ae making themselves rich at the expense of suppliers and public shareholders.)
What are the implications for Kenneth Teoh, Teoh Seng Aun, others directors, and employees who are involved with these kind of undesirable activities, as mentioned by "A Friend"?
Let's look at all those people involved and what their crimes might be:
Directors
Directors such as Kenneth Teoh, Ong Bok Siong, Dr Patrick Teoh, and other members of the board will be guilty of:
1. Failure of carrying out their directors' duties;
2. Failure to act for the interest of the Company;
3. Fraudulent & false reporting;
4. Lying to the public about the real and true facts of the Company's business;
5. Defrauding the public shareholders;
6. Criminal breach of trust;
7. Criminal neglect of duties;
8. (Possibly) mis-use of company funds for private purposes;
9. (Possibly) illegal siphoning out of company funds.
Auditors
Auditors are supposed to be professionals who uphold their integrity. They are supposed to do the right thing because the public place their trust in these people to report correctly and the truth. In the Meda Inc Bhd case, the auditors could be faced with:
1. Professional negligence (if they have not bothered to probe deeply);
2. Liability to compensate public losses for their failure to do their job professionally and competently;
3. Collusion with Meda Inc Bhd directors to defraud the public (if they knew what was going on);
4. Criminal breach of trust;
5. Incompetence (if they didn't know what's going on);
6. Accomplices in a crime.
There will also be other people indirectly involved, such as Acounts Managers and Financial Controllers. A lot of the illegal activities in a PLC like Meda Inc Bhd cannot be done without the knowledge of accounts clerks, managers and FCs (Financial Controllers). In some ways, our friends at this level are indirectly also helping their bosses and directors carry out illegal activities that defraud and mislead the public. Their own co-workers will also get a bad deal because all those talk about bonuses and "profit sharing" will be nothing more than empty promises. Employees in Meda Inc Bhd (and Summit Hotel USJ) will know what I am talking about: the management always promise this and that IF the performance is better, but those promises never come true.
Not only are the public shareholders and authorities being conned, the employees also are being conned by their management.
Tuesday, February 27, 2007
Multiple charges for Meda Inc Bhd directors!
Thursday, February 22, 2007
Exposed! Meda Inc Bhd lie about their sales!!!
A kind gentleman writes in to contribute interesting information about Meda Inc Bhd. He has given permission to publish the email for you readers:
"Dear Wendy,
You have most of the stuff about Meda correct except you do not know the REAL POWERMAN behind the whole operation. Kenneth Teoh is basically a front man. He only follow the instructions and appears to be the bad guy. The true DECISION MAKER is TEOH SENG AUN. He is the majority shareholder of the group and he does not hold any Directorship. His position in the company is Chief Operating Officer but he WIELDS the real power behind the company. In fact the group was started by him and two other partners.He pulled in his two brothers when the company was doing well. Because of his brothers Teoh Seng Aun had a fallout with his two partners and they split sometime in 1997.
ALL PAYMENTS TO SUPPLIERS AND CONTRACTORS MUST HAVE THE APPROVAL OF TEOH SENG AUN.Kenneth Teoh merely sign the checks together with Ong Bok Siong. EVERY MANAGEMENT DECISION ON THE FUTURE OF THE COMPANY INCLUDING DEVELOPMENT PLANS FOR THE GROUP MUST HAVE TEOH SENG AUN'S ENDORSEMENT OTHERWISE IT WILL BE NO GO.
Just to let you in on a secret as to WHY MEDA INC SHOWS PROFIT EVERY YEAR? Simple!!!!! They just create false sales for their projects. They use two Ringgit shell companies to purchase the properties they develop and pay ONLY 5% of the purchase price and then sign the Sales and Purchase agreements and register the sales as 100% sales. The full purchase price will be shown as income but in actual fact only 5% is paid. As such Meda Inc does not really have the cash to pay the suppliers and contractors.
You do not need to know who I am but the above is just the first instalment of more about Meda. You can print the FULL details I have given and I hope it will help you on your quest to expose how PLCs exploit the loopholes to cheat the public." - from A Friend.
Wendy says "thank you very much" for your contribution, Tuan. Your expose has definitely added a new perspective on the whole Meda Inc Bhd operation. We look forward to hearing more from you. Thanks very much for your suport.
Reporters Are Waiting...
I know some reporters are following this blog. They are waiting for more info to come up before they publish in their newspapers. Meantime, readers can continue to submit to me photocopy documents and other stuff which I can send to SC and CCID of PDM for further investigation and action, it will be appreciated. Don't let these PLCs cheat us anymore! Malaysia boleh!
Selamat Tahun Baru Cina!
I collected a bit of hong baos, so hope my chinese readers also have a prosperous time.
For Kenneth Teoh and his brothers who still come in to check up on what's new here, good luck to you, too. But you know very well, whatever you have done will catch up with you soon. You will need a lot of luck to get through, because you really have no hope left. Anyway, chinese businessmen with integrity will try to settle all their debts before the Lunar New Year. For Kenneth Teoh and his Meda Inc Bhd, they have snowballed so much debts over the years since they started, that they will forever hutang their suppliers. Not good for them lah.
We Left Kenneth Teoh alone during Chinese New Year
Some of the suppliers wanted to pay a "courtesy visit" to Kenneth Teoh's home at Jln Kiara 2 during Chinese New Year. They wanted to inform the police first, and then together in a group, go to the front gate with banners and loudhailer to demand payment from Kenneth Teoh. Chinese believe that during the New Year celebration, they should keep calm and not get angry so that they will enjoy good fortune throughout the year. So, after discussion they decided not to carry out the plan. Instead, they get together and enjoyed a nice lunch together and wish each other good luck. Of course, they also did NOT have good thoughts for Kenneth Teoh and the Meda Inc group.
