TIGER Synergy Bhd is being queried by the Minority Shareholders Watch Group (MSWG) over prepayments of turnkey advances amounting to RM39.3 mil as of end-December 2019 to a contractor for project construction pursuant to turnkey agreements between both parties.
MSWG will raise its query at the property developer’s fully virtual annual general meeting (AGM) which is scheduled for tomorrow (Monday) at 11am.
According to Tiger Synergy, the prepayments are to be recouped through the interim payment certificate when the cumulative total certified value of the contractor’s executed work (including the amount certified for materials on site) reaches 75% of the total contract value of the contract work.
“Why did the group provide turnkey advances to the contractor prior to the construction as contractors are normally paid for the work completed on a progressive basis?” asked the shareholders’ activism group.
“Please name the contractor to whom the group has advanced the money amounting to RM39.3 mil as well the property projects the group has awarded to the contractor.”
Additionally, MSWG wanted to know the expected completion dates of the property projects undertaken by the contractor?
“What is the progress of the property projects undertaken by the contractor? Is there any construction progress on the property project undertaken by the contractor as the turnkey advances to the contractor remain unchanged for the past two financial years?” MSWG further probed.
“What are the remedies available to the group if the contractor fails to complete the property projects awarded?”
In a separate development, MSWG is also seeking clarification from Tiger Synergy at the company’s extraordinary general meeting (EGM) which will convene soon after its AGM as to why the company wanted to implement another round of employees share option scheme (ESOS) as there is already an existing ESOS that will only expire on Oct 1, 2024.
For the record, the company established its first ESOS on May 29, 2014 for a period of five years and subsequently extended the scheme by another five years till Oct 1, 2024.
“What is the number of ESOS that is still outstanding as of June 30, 2021?” enquired MSWG. “Please provide the names and quantity of ESOS shares granted to individual director and senior management of the group from the inception of the ESOS till June 30, 2021?”
Tiger Synergy was last traded on Dec 2 at 4.5 sen with 605,000 shares traded which gives the company a market capitalisation of RM116 mil. — Dec 5, 2021