MACC Clean Up Corporate Rats

Author: MaccClean   |   Latest post: Wed, 20 Mar 2019, 9:59 AM


Protasco Bhd Chong Ket Pen salary jump from FY12 RM600k to FY16 RM4.2mil, up 800%. The JKR contractor public fund looted a form of self-gratification?

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17 January 2019, Kajang, Selangor, Malaysia - The Malaysia largest road maintenance contract raider, Protasco Bhd (Bursa 5070) had recently being implicated in SPRM (MACC) anti-corruption raid, involving the company Menuju Asas Sdn Bhd and the company director Mohammad Redzuan Mohanan Abdullah, where during the same period fo alleged graft and money laundery by SPRM, Menuju Asas Sdn Bhd was having business with HCM Engineering Sdn Bhd, and entered into lawsuits on business disputes, followed by settlement. (Source: http://disclosure.bursamalaysia.com/FileAccess/viewHtml?e=297084). HCM Engineering Sdn Bhd is the subsidiary of Protasco Bhd, and Chong Ket Pen was the 13.3% shareholder and Executive Director of Protasco Bhd during material time.

Menuju Asas Sdn Bhd and the company director Mohammad Redzuan Mohanan Abdullah, was implicated in the SPRM (MACC) probe in September 2018 and Azeez, a former Tabung Haji chairman, was slapped with three charges of receiving bribes worth RM5.2 million and nine charges of money laundering amounting to RM139.3 million, including Menuju Asas Sdn Bhd.

According to New Straits Times 16 Jan 2019 report, Baling member of parliament Datuk Seri Abdul Azeez Abdul Rahim and his brother Datuk Abdul Latif were charged at the Sessions Court here today with graft and money laundering amounting to RM144.5 million, since Dec 2010. He was accused of receiving the kickbacks from Menuju Asas Sdn Bhd director Mohammad Redzuan Mohanan Abdullah, between December 2010 and April last year, as an inducement for the company to obtain RM197.8 million worth of road projects in Kedah and Perak from the government through direct negotiation and selective tender. (source: https://www.nst.com.my/news/crime-courts/2019/01/451150/updated-baling-mp-azeez-claims-trial-graft-money-laundering-charges )
For the second and third charge, he was accused of receiving RM4 million in two transactions from the same person as a reward for him assisting the company to obtain road projects worth RM842.2 million through limited tender from the Works Ministry.

Market speculate when would Protasco Bhd and the executive director Chong Ket Pen which deals with road project contracts with Menuju Asas Sdn Bhd would expose the money trail and private dealings among the dodgy companies during the period.

Chong Ket Pen suspected dodgy deals could be reflected on his selfish and reckless character as exposed by Protasco Bhd financial reports. Chong Ket Pen was drawing approximately RM50,000 a month salary as a director as recorded in the year 2012 annual report.

Chong later lost his executive power and board control during June 2012 - October 2012 when Ibrahim Noor took over majority shares of Protasco Bhd to 27.11% and appointed himself and 2 other Executive Director into Protasco board, together with few more independent directors.

Upon entry of new controlling shareholder in 26 November 2012, Ibrahim Noor and all the newly appointed directors resigned, leaving Chong Ket Pen as the only executive director of Protasco. Chong Ket Pen further appointed new independent directors and regained his board control during November 2012 - January 2013. November 2012 onward, Chong Ket Pen held Protasco chairman Hadenan Abdul Jalil as the king pin to control majority of Protasco board.

On September 2014, Chong Ket Pen through Protasco manufactured a blame on a failed oil asset acquisition on Protasco controlling shareholders, and took full board control of Protasco board on November 2014 onwards.

Chong Ket Pen has since use his full control of Protasco board, self-increased his salary and fees to RM4.2 million on year 2016, or 800% above his normal salary before we gained full control of Protasco. Protasco however, saw the business turn negative, with lower profit margin suspected transfer pricing, and alarming debt exceed RM600 million, according to Protasco Q3 2018 financial report. More alarming is the sudden increase of Hire Purchase over year 2014-2018, suspected over RM6 million was spent on car purchases, which is a form of self-gratification especially looking at Protasco poor financial performance. The unrealistic salary, dividend and suspected transfer pricing took place inside Protasco saw Chong Ket Pen and sons recycled the money to purchase more Protasco shares.

(source: Year 2012 Chong Ket Pen salary remained the same estimated RM50,000 per month, with the remaining pay went to 3 newly appointed executive directors after the emerge of Ibrahim as controlling shareholder. In Year 2011, Chong Ket Pen and the former joint-co-founder, Hasnur, were taking same salary around RM50,000 per month. http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download/?name=EA_DS_ATTACHMENTS&id=161504

Year 2014-2018, Chong Ket Pen increased his personal pay by RM1mil a year, until the peak of RM4.2mil in year 2016. The overall Protasco Senior Management and Director fees also ballooned from RM2.5mil to RM10mil per year, right after Chong Ket Pen took control of Protasco in the said period. According to Bursa Malaysia public announcement).

Would SPRM (MACC) take action soonest before the looting spree consumed Protasco? Perhaps the probe came sooner than the market anticipated, through the expose of Menuju Asas Sdn Bhd dealings with HCM-Protasco.





Protasco 2016 annual report Chong Ket Pen salary record: RM4.2 million





Protasco 2012 annual report Chong Ket Pen salary record: estimated RM600,000


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