Introduction
The corporate landscape of Malaysia was shaken by the emergence of the Protasco scandal, a complex web of alleged corruption and financial mismanagement involving high-profile figures and billions in government contracts. Central to this controversy are Tun Daim Zainuddin (“Daim” or “Shorty”) and Chong Ket Pen (“CKP”), whose intricate involvement with Protasco Berhad (“Protasco”) has raised serious concerns over the integrity and transparency of corporate governance in Malaysia.
Tun Daim, a prominent political figure known colloquially as "Shorty", is alleged to have wielded significant influence over Protasco, a major player in the so called privatization of Malaysia’s infrastructure services. Chong Ket Pen, often referred to as "CKP," is said to have been the operational brain behind Protasco’s strategic maneuvers, acting as Tun Daim's proxy. The scandal revolves around RM10 billion worth of contracts awarded by the Malaysian Public Works Department (JKR) to Protasco during Tun Daim's tenure as Finance Minister (from 1984 to 1991, Tun Daim retired as Finance Minister, coincidentally his SPV Protasco was setup) and political influence from year 1998 to 2014 (Tun Daim was once again Finance Minister from 1999 to 2001, coincidentally his SPV Protasco awarded gigantic government contracts from 1998 onward and went public IPO in year 2003), raising suspicions of impropriety and illicit financial flows.
The scope of the alleged corruption is vast, involving not just direct kickbacks but also complex financial operations, including dubious corporate dealings and obscured ownership. These revelations have not only cast a shadow over Protasco’s corporate dealings but also highlighted potential systemic issues within Malaysia’s economic and political spheres.
Background of Protasco Berhad
Protasco Berhad's evolution from an unknown company to a significant presence in the Malaysian corporate sector is both fascinating and controversial. Founded in 1991, coinciding with Tun Daim's retirement as Finance Minister, by his nominee Hasnur Rabiain bin Ismail ("Hasnur") and Chong Ket Pen ("CKP"), the company initially concentrated on road maintenance and construction. Protasco saw a major shift in fortunes during the late 1990s and early 2000s, paralleling Malaysia’s infrastructural development push. CKP, a civil servant eventual linked to Kumpulan Ikram Sdn Bhd ("Ikram") associated with government agency JKR, played a crucial role in the scandal-triggering privatization of Ikram and the controversial 51% shareholding of Roadcare (M) Sdn Bhd held by HCM Engineering Sdn Bhd, all subsidiaries under Protasco.
Court evidence suggests that CKP, as Tun Daim's nominee and cohort, admitted that Tun Daim is the beneficial owner of Protasco through nominee vehicles Dream Cruiser Sdn Bhd and Fnq Advanced Materials Sdn Bhd, both major shareholders of Protasco Berhad. CKP orchestrated the sale of these shares to investors, reportedly profiting Tun Daim by RM100 million while gaining control of his boss's company. This information is expected to be revealed in a MACC charge against Tun Daim in a Malaysian court on January 29, 2024. [reference*]
The company's growth trajectory changed markedly with the involvement of Tun Daim. His influence as Finance Minister was seen as a catalyst for Protasco securing several government contracts, most notably totalled RM10 billion JKR public road maintenance contracts. These contracts were pivotal in elevating Protasco to a position of prominence in the Malaysian infrastructure sector.
Key players in Protasco's management, particularly CKP, seems to be demonstrated a profound understanding of the interplay between corporate strategy and political influence. CKP’s ascent within Protasco is closely linked to his association with Tun Daim, illustrating the often-entwined nature of corporate growth and political patronage in Malaysia. This relationship was not just beneficial for business operations but also crucial in shaping the company's strategic decisions and growth path.
Full report : https://tundaimprotasco.wordpress.com/2024/01/29/tundaim-chongketpen-protasco/
Report Index
Introduction
Background of Protasco Berhad
Alleged Corruption under Tun Daim’s Tenure
The Menara Ilham Case Study
In-depth Analysis of Entities Involved
Financial Malpractices and Public Deception
The Mysterious Demise of Mr. Ho Chun Fuat
Legal Implications and Potential Charges
Impact on Malaysia and International Relations
Conclusion and Recommendations
References and Bibliography
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