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.