Sslee blog

Bumi Armada: Follow up on my complaint

Sslee
Publish date: Sat, 24 Jun 2023, 06:33 PM
Sslee
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This is my blog
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Dear Bursa Malaysia CEO Datuk Muhamad Umar Swift, SC, Bursa, MSWG, The Edge Malaysia editor,
 
I read with great interest and great concerns on above news link:
{KUALA LUMPUR (June 12): Bursa Malaysia Bhd said the "approved securities" for regulated short selling (RSS) and intraday short selling (IDSS) will now require a lower minimum daily market capitalization of RM200 million, from RM500 million previously.
 
“By broadening access and choice for investors, we are solidifying our commitment to improving market efficiency,” said Bursa Malaysia CEO Datuk Muhamad Umar Swift.
 
“As a maturing market, it is vital that we offer a marketplace with robust facilities to cater to the differing needs of investors, while remaining focused on ensuring a vibrant, fair and orderly market,” Umar added.}
 
My concern is that RSS and IDSS is a zero sum game where the winner will be the insiders, IBs, IBs VVIP super rich clients, manipulators, pump dump syndicate etc whereas the main loser will be the ordinary retail investors.
 
Bursa is not an efficient, vibrant, fair and orderly market due to many listed companies does not compliance with timely disclosure requirement or the need for urgent and accurate response to misinformation/speculative/manipulating/hearsay information by media or IBs analyst and the worst are some unscrupulous insiders/CEO working hand in hand with Pump and Dump syndicate with misleading information/manipulating quarterly result for the main purpose of share price manipulation.
 
Case in point:
Case 1:
My recent complaint to SC, Bursa, Bumi Armada IR, IBs: CGS CIMB and Hong Leong Investment Bank (HLIB) reporting on Bumi Armada Berhad: SC Case: SC2023-42787. Bursa Ref CAS-29378-R4B6S6
Attachment 1: My complaint on CGS CIMB and Hong Leong Investment Bank (HLIB) reporting on Bumi Armada Berhad dated: 7 Jun 2023, 08.14
Not surprising Bumi Armada IR and IBs did not respond but what surprised me the most is Bursa did not even query Bumi Armada for urgent response to speculative/arbitrary damaging IBs Analyst report below:
 
CGS CIMB has included a loss of six months of BBC cash receipts in 2H2023F, a loss of six months of finance lease income in the FY2023 profit and loss statement (P&L), and US$50 million of repair and maintenance costs borne solely by Bumi Armada and charged into its FY2023F P&L.
 
Hong Leong Investment Bank (HLIB) Research estimates that the Kraken FPSO has a daily charter rate of approximately USD480k/day (or USD175m/year), which accounts for some 35% of the group’s revenue contribution in FY2022.
“We are negative on this development. While we acknowledge that we do not have clarity of Kraken’s shut-in timeline yet, we decide to make an arbitrary estimate of a six-month downtime for the said FPSO,” it added.
 
Frankly Speaking: Bumi Armada’s perplexing profit warning
By The Edge Malaysia
12 Jun 2023, 03:30 pm
I agree totally with The Edge Malaysia:
{While Bumi Armada has issued a profit warning, which caused its share price to fall by more than 25% to as low as 45 sen within four days, there is no news — adverse or otherwise — on the development of the Kraken field from UK-listed EnQuest
 
While it is good that Bumi Armada has issued a profit warning and used the shut-in period to undertake maintenance works, it should issue some guidance on the impact to its bottom line. At the moment, the depth of the problem in Armada Kraken is anybody’s guess.}
 
And finally Bumi Armada made the following announcement via Bursa:
Reference is made to the announcement made by Bumi Armada Berhad ("Bumi Armada") on 2 June 2023 with respect to the unplanned shutdown of the Armada Kraken FPSO ("Kraken FPSO") owned by Bumi Armada’s wholly owned subsidiary, Armada Kraken Pte Ltd. 
 
Bumi Armada wishes to announce that following the recent start-up of the Kraken FPSO, production is currently circa 60% of pre shutdown levels. There is still further work, testing and investigations ongoing to stabilise and bring the vessel operational performance back to pre shutdown level.
Bumi Armada will continue to announce material updates as and when they are known. 
This announcement is dated 21 June 2023
 
Remark: Bumi Armada only came out with the above announcement because someone actually lodged an official complaint against Bumi Armada Berhad for withholding material information from investors
 
{Dear Sir/Madam,

I would like to lodge an official complaint against Bumi Armada Berhad for withholding material information from investors, particularly minority shareholders.

I make reference to the announcement titled "Unplanned Kraken Shut-in" dated 2 June 2023 made via Bursa Malaysia.

Here, the statement ended by saying "Further updates will be made from time to time when there are material developments".

I have it on good authority, from xxx, the xxx at Enquest, who operate the Kraken field, that the Armada Kraken FPSO resumed production last week Monday, 12th June 2023, and has been producing oil on a single train at roughly 50% capacity.

Is this not a Material development? Why has Bumi Armada Berhad not issued a further update on the same to Bursa Malaysia? Minority shareholders are disadvantaged, as insiders would have known well in advance that production had resumed in some capacity.

Appreciate if Bursa Malaysia investigates this matter further and enforce transparency in matters such as this.

Thank you!}
Attachment 2: My email corresponds with Mr. Craig Baxter Head of Investor Relations EnQuest
 
Bumi Armada: Recent Price
Date
Open
Range
Close
Change
Volume
23/06/2023
0.475
0.465 - 0.48
0.47
-0.005 (1.05%)
23,852,700
22/06/2023
0.49
0.475 - 0.50
0.475
-0.01 (2.06%)
56,813,700
21/06/2023
0.445
0.435 - 0.49
0.485
+0.045 (10.23%)
123,795,900
20/06/2023
0.46
0.44 - 0.465
0.44
-0.025 (5.38%)
29,105,400
19/06/2023
0.45
0.44 - 0.47
0.465
+0.02 (4.49%)
23,804,000
16/06/2023
0.445
0.43 - 0.45
0.445
+0.005 (1.14%)
33,747,100
15/06/2023
0.45
0.43 - 0.45
0.44
-0.015 (3.30%)
33,492,600
14/06/2023
0.455
0.445 - 0.46
0.455
+0.005 (1.11%)
28,455,200
13/06/2023
0.425
0.415 - 0.46
0.45
+0.03 (7.14%)
58,883,000
12/06/2023
0.48
0.415 - 0.48
0.42
-0.055 (11.58%)
146,108,900
09/06/2023
0.47
0.455 - 0.485
0.475
+0.01 (2.15%)
45,222,000
08/06/2023
0.46
0.455 - 0.475
0.465
+0.01 (2.20%)
39,437,600
07/06/2023
0.485
0.45 - 0.495
0.455
-0.03 (6.19%)
106,036,400
06/06/2023
0.525
0.47 - 0.53
0.485
-0.15 (23.62%)
266,982,900
02/06/2023
0.63
0.62 - 0.64
0.635
+0.01 (1.60%)
7,493,400
 
Damage has been done and it will take time to rebuild investors’ confidence. So at the end who are the winners from RSS and IDSS in above case 1 and who are the real losers?
 
Case 2:
BOUSTEAD PLANTATIONS BHD:  Recent Price
Date
Open
Range
Close
Change
Volume
23/06/2023
0.895
0.875 - 0.92
0.895
0.00 (0.00%)
8,942,300
22/06/2023
0.97
0.89 - 0.97
0.895
-0.05 (5.29%)
14,463,400
21/06/2023
0.87
0.855 - 0.97
0.945
+0.03 (3.28%)
29,591,800
20/06/2023
0.985
0.91 - 1.00
0.915
-0.095 (9.41%)
30,898,500
19/06/2023
0.915
0.905 - 1.01
1.01
+0.12 (13.48%)
49,311,500
16/06/2023
0.86
0.85 - 0.895
0.89
+0.03 (3.49%)
16,261,900
15/06/2023
0.825
0.825 - 0.905
0.86
+0.04 (4.88%)
26,807,000
14/06/2023
0.79
0.76 - 0.825
0.82
+0.03 (3.80%)
11,660,300
13/06/2023
0.80
0.785 - 0.81
0.79
-0.01 (1.25%)
7,514,100
12/06/2023
0.805
0.765 - 0.82
0.80
+0.005 (0.63%)
17,137,700
09/06/2023
0.64
0.64 - 0.795
0.795
+0.155 (24.22%)
29,226,600
08/06/2023
0.675
0.64 - 0.675
0.64
-0.02 (3.03%)
3,923,500
07/06/2023
0.675
0.67 - 0.685
0.67
-0.005 (0.74%)
2,159,000
 
{KUALA LUMPUR (June 19): Boustead Plantations Bhd (BPlant) shot up as much as 12 sen or 13.48% to an all-time high of RM1.01 in Monday (June 19) morning trading, after The Edge Malaysia weekly, citing sources, reported that Boustead Holdings Bhd is planning to divest its 57% stake in the plantations group. Year-to-date, it has risen 70.18% or 41.65 sen from 59.35 sen
 
Meanwhile, 49.31 million shares traded hands, making BPlant the sixth-most traded counter on Monday. The volume of traded shares was almost 25 times its 200-day average of 2.21 million.
 
According to the weekly magazine, bidders include YTL Group, Wilmar International Ltd, IOI Corp Bhd and Kuala Lumpur Kepong Bhd
 
In a note on Monday, PublicInvest Bank said it estimated that BPlant could have an enterprise value (EV) of RM2.5 billion to RM3 billion, thanks to its vast tracts of lands in Malaysia, which include strategically located parcels that are suitable for property development.}
 
The Edge Malaysia as business news portal has every right to chase and report business unconfirmed deals. Something is definitely brewing in Boustead Plantations for share price to suddenly shoot up from 64 cents on 08/06/2003 to high of RM1.01 on 19/06/23 in just 7 trading days (It can also be the work of pump and dump syndicate)
 
 
{We refer to the news article titled “Boustead said to be disposing of plantation arm” which appeared in The Edge Malaysia newspaper dated 19 June 2023.
 
The Company having made due inquiry with its Board of Directors, its major shareholders and all such person reasonably familiar with the matter, we wish to confirm that as of the date of this announcement, the Company is not aware of any agreement involving the Company entered into with the substantial shareholders.
 
The Company will make the necessary announcements as and when it becomes aware of any material development involving the Company.
This announcement is dated 20 June 2023
 
BOUSTEAD HOLDINGS BERHAD'S CLARIFICATION ON NEWS ARTICLE TITLED "BOUSTEAD SAID TO BE DISPOSING OF PLANTATION ARM" BY THE EDGE MALAYSIA
We refer to the news article titled “Boustead said to be disposing of plantation arm” which appeared in The Edge Malaysia newspaper dated 19 June 2023.
 
The Company having made due inquiry with its Board of Directors, its major shareholders and all such person reasonably familiar with the matter, the Company wishes to confirm that the Company have not entered into any agreement involving the disposal of its stake in Boustead Plantations Berhad. The Company continues to focus on its business plan and value creation for its stakeholders and investors.
This announcement is dated 20 June 2023}
 
So do the above clarification by Boustead Plantation and Boustead Holding helpful in making Bursa an efficient, vibrant, fair and orderly market?
 
Why can’t Boustead Holdings Bhd just answer to the point that Boustead Holdings Bhd did or did not invite bidders including YTL Group, Wilmar International Ltd, IOI Corp Bhd and Kuala Lumpur Kepong Bhd to bid for its 57% stake in the Boustead Plantation Bhd?
 
How this will end and who will end up as the winner and loser is yet to be played out but for sure Bursa as an efficient, vibrant, fair and orderly market is a bridge too far.
 
Case 3:
Bursa Ref: CAS-27923-D0K3D0
Kenanga did not respond but Petronm IR invite me to a meeting which I gladly accepted
A Crack Spread Refinery Play
Petron Malaysia Refining - A Crack Spread Refinery Play
Date: 27/10/2022
Source
 : 
KENANGA
Stock
 : 
PETRONM
     
Price Target
 : 
4.65
 
 
 
 
 
I wrote: I am shocked and can’t believe my eye Kenangan IB analyst had just discounted Petron Malaysia petrol stations earning contribution totally and assumed Petron Malaysia as “A Crack Spread Refinery Play”
A fairer Petron Malaysia valuation is by sum of parts valuation on Petron Malaysia refinery margin and Petron Malaysia petrol stations earning:
 
In hindsight, I should have known better is Kenanga’ analyst allowed to give his fair and unbiased analysis when IB Kenangan has vested interest in PETRONM-CX: CW PETRON MALAYSIA?
Issuer:  KENANGA INVESTMENT BANK BERHAD
Description:      EUROPEAN STYLE NON-COLLATERALISED CASH-SETTLED CALL WARRANTS          
Listing Date:     Feb 25, 2022
Maturity Date:   Jan 16, 2023
Issue Size:        35,000,000
Exercise Price:  MYR 4.88
Ratio:   6 :1
Underlying Stock:          PETRONM
 
Case 4: Questionable financial/information disclosure on disposal of JSB 51% equity to ICD for consideration of RM1.00
Bursa Ref: CB/155/21
 
JAKS Financial ended: 2022: 2021: 2020: 2019
Impairment loss on:
Trade receivables RM: 5,099,410: 9,848,415: 25,862,099: 5,318,354
Other receivables RM: 18,737,258: 13,461,525: 45,331,965: 7,188,995
 
SERBA DINAMIK HOLDINGS BERHAD
Financial: 9 months ended 31/3/2023: Year ended 30/6/2022: 30/6/21
Impairment of trade and other receivables RM: 865,009,000: 393,205,000: 394,998,000
 
I cannot believe that Bursa reply to me on impairment of receivable: Please also note that it is the prerogative of the Board of Directors of the listed issuer whether to take legal action with regard to recovery of the receivables.
So impairment of receivables did complied with approved accounting standards and can be used as a legal way to whitewash accounting fraud or siphoning listed company money to relate party, friendly party or to own private company?
 
Here we are talking about making Bursa an efficient, vibrant, fair and orderly market. But I can’t agree more on the feeling and frustration expressed by i3investor commentator:
hulwan These kinds of shenanigans, and then they wonder why our Bursa is in the doldrums
 
The above makes a pretty sad reading but all is not lost if all the stakeholders of the capital market will come together to do something positive.
 
I still remember my first complaint to SC and Bursa on Xingquan with the following:
I was shocked that the CEO was allowed to lie through his teeth with impunity during the AGM Q&A session and the external Auditor and Independent Directors danced to the CEO tune.
I also complain bitterly why I should pay Xingquan Company Secretary RM70 to get a copy of Xingquan AGM minutes, can’t they publish it on Bursa or the company website.
Attachment 3: Xingquan AGM minutes for all to see for your-self what I mean by CEO lie through his teeth with impunity and external Auditor and Independent Directors dance to the CEO tune
 
I am more that grateful and thrill when I read the below link:
 
Annual General Meeting CORPORATE GOVERNANCE CHECKLIST FOR SHAREHOLDERS
Co-author by SC, Institutional Investors Council Malaysia and MSWG
Since then I can see a sea-change in the way AGM was conducted. My many thanks to SC, Institutional Investors Council Malaysia and MSWG
 
Will SC and bursa working together with Institutional Investors Council Malaysia and MSWG come up with CORPORATE GOVERNANCE CHECKLIST in addressing?
1.     How listed companies should respond to news, IBs analyst report and investor enquiry.
2.     IBs analyst should include the briefing material, transcript of Q&A and interview as appendix.
3.     How to prevent abuse of impairment of receivables to whitewash accounting fraud or siphoning listed company money to relate party, friendly party or to own private company
4.     Should SC informed the complainer the progress/status of complaint lodged with SC and Bursa (case still active or close with no action)
 
My patience is running thin/out on my quest in seeking Justice for Xingquan minority shareholder:
 
It seem Bursa and SC are contented with action taken to delist Xingquan and action taken on the following 4 directors of XINQUAN were imposed the following penalties for breach of paragraph 16.13(b) of the Main LR where they had permitted XINQUAN to commit all or some of XINQUAN’s Breaches
 
I do not understand why SC would like to impose the same restriction on already delisted Xingquan “by secrecy provisions under the securities law from disclosing to you any information obtained during the performance of our regulatory functions” to deny me answers to my following questions:
 
Question 1: In view of the seriousness of offends/frauds committed by the fraudsters and their total disregard/contempt shown against authorities of SC and BURSA with no respect for Malaysia Law. Has SC made an extradition request with the Chinese government to extradite CEO Dato’ Wu and his brother executive director Wu Lianfu to stand trial in Malaysia Court?
 
Xingquan brand products (Gertop) are available for sale at many online shopping websites. This means Xingquan still has production lines and assets in China but the China owner and Management team just took us Malaysians as fools and showed utmost contempt to SC and BURSA authorities/Malaysia law.
Will SC now invoke CMSA 2007 section 358 (1) in the public interest, taking legal action against Xingquan to recover loss on behalf of victims who suffers loss or damage by reason of, or by relying on, the conduct of another person who has contravened any provision of Part VI or any regulations made under this Act, the amount of the loss or damage by instituting civil proceedings against the other person whether or not that other person has been charged with an offence in respect of the contravention or whether or not a contravention has been proved in a prosecution?
 
Question 3: Is SC investigating Xingquan External Auditor: SJ Grant Thornton, IPO: CIMB Investment Bank Berhad and PP & RI: RHB Investment Bank Berhad principal advisor, underwriter and placement agent for gross negligence and failure to perform their fiduciary duty?
 
I miss the good old days where I knew the then Bursa and SC investigation officer (Mr. Eddie Yeo: Bursa Senior Vice President, Corporate Surveillance & Governance Division. Mr. Kamarul Rozman Nordin SC Assistant General Manager Consumer & Investor office) and can follow up with them with a meeting to know the progress of my complaint on Xingquan. But nowadays I don’t even know if my case is still under investigation or if the case is closed with no further action.
 
By the way, how is Mr. Eddie Yeo?  Hope he has fully recovered.
 
Last but not least, “Trust takes years to build, second to break and forever to repair”
Can retail investors put their trust and confidence in Bursa and SC to protect and safeguard their interest?
The day when majority of retail investors’ answers is “YES” then that is the day I would agree with Datuk Muhamad Umar Swift: Bursa is an efficient, vibrant, fair and orderly market. So please, Datuk Muhamad Umar Swift make that day come true.
 
Thank you
Have a good day
 
Best regards
Lee Soon Sheng
Note: I am loooking forward to read the CapitalA IBs analyst briefing material, transcript of Q&A as appendix to see whether any analyst put Tony under the knife with tough, difficult and probing questions?
Example::
As at 31/3/2023:
Net current liabilities RM: (8,524,896,000)
Equity: Owner of the Company RM (5,553,254,000)
Non-controlling interests RM: (3,822,946,000)
  1. How is CapitalA going to manage the cash flow to meet the obligation of Net current liabilities RM (8,524,896,000) in the next 12 months?
  2. In what way CapitalA can solve the negative equity of RM (5,553,254,000) by divesting its aviation group to AirAsia X in exchange of shares for subsequent distribution to its shareholders?
  3. Had the capitalA already done the below Pre-Requisite to be on track to announce the details of its PN17 regularization plan in July 2023 with completion expected by end- 3QCY23?
(a) ​All agreements to be entered into with third parties as part of the regularization plan have been duly executed by all parties to such agreements; and
​ ​(b) where the regularization plan involves a compromise or arrangement with the PN17 Issuer's creditors, the PN17 Issuer has taken reasonable steps to procure the agreement-in-principle of such creditors.
 
My personal view/opinion: How to make Bursa Malaysia the choice of investor and capital market?

 

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Discussions
8 people like this. Showing 9 of 9 comments

Sslee

All are welcome to comment.
I will email out next week

2023-06-24 18:34

Robert Waters

Thank you for putting in the effort. In the end, small investors pay for the profits of those closer to the money source in a 'zero net gain' game.

2023-06-25 13:51

probability

sslee thank you so much..you are such a gem
i completely lost trust on Bursa & SC after the Serbadinamik drama...crooks like Karim can only thrive with involvement of the guys at the top of Bursa & SC

our corruption level has gone down to the level of Indonesia 30 years ago

2023-06-25 14:21

newuser

well done..sslee! Salute to your effort.

2023-06-26 10:05

Sslee

Received the following standard reply from SC and Bursa

Dear Sir,
Reference is made to the above matter.

Your case reference number is: [Case: SC2023-xxxxx]. Please use this reference number for any future communications with us.

Please be informed that we have received your complaint and it is currently being reviewed by the Securities Commission Malaysia (SC).

Should the review reveal any breaches of the securities laws, appropriate action will be initiated. We however wish to advise that in conducting our assessment and determining whether the matter will be escalated for further action, consideration is given to a range of factors, including the likely regulatory effect of any available action.

Kindly note that SC is restricted by secrecy provisions under the securities law from disclosing to you any information obtained during the performance of our regulatory functions.

Please contact our officers at the Consumer & Investor Office at + 603-6204-8999 for any inquiries.

Thank you.

Aduan Officer
Consumer & Investor Office
Securities Commission Malaysia


Dear Sir/Madam,

Reference is made to your e-mail on the above matter.

We have escalated the complaint to our line department concerned for their further action. The assessment into the matter you highlighted may take time, depending on the complexity of the issues raised. However, we will undertake the necessary actions to ensure that your complaint is looked into accordingly and will take the necessary enforcement actions if there is any breach of Listing Requirements.

As we do not play the role of ombudsman nor do we conduct arbitration, in the event of conflicts or financial losses, the aggrieved parties need to file the claims through the appropriate legal process in court.

We will also make the necessary referral to other relevant authorities should we come across any potential breaches of other regulations / Acts (other than the Listing Requirements).

Thank you and have a good day.


Bursa 2U
Bursa Malaysia Berhad
Our Ref : CAS-29571-xxxxxx

2023-06-27 08:34

Sslee

Will write to Datuk Muhamad Umar Swift and his office secretary next week whether can I be reasonable expect to receive a reply from Datuk Muhamad Umar Swift?

2023-06-27 08:36

Asengkianjoo

My good friend Sslee, Aseng had misunderstood you . SORRY , SORRY, SORRY.........

2023-07-31 15:45

Sslee

Dear Aseng,
No need to say SORRY. I already put the PAST down, but you’ve been carrying the PAST all day long.”

2023-07-31 17:14

Asengkianjoo

Tuan Sslee, THANK YUO🙏

2023-08-01 11:37

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