Facts Report:

With the surface to evidence and discharged of sham lawsuit, since proven it’s a con, Chong Ket Pen shall be charged by AG on abuse of court process for Chong Ket Pen’s personal gain and void paying his debt as per in breach of his personal guaranteed agreement dated 3 November 2012.

 

Major shareholder Global Capital of Indonesia sues Protasco managing director, claims RM368m

PETALING JAYA: The feud at Protasco Bhd has taken a new twist as substantial shareholder Global Capital Ltd (GCL) has initiated a civil suit against the group’s executive vice-chairman and managing director Datuk Seri Chong Ket Pen for alleged abuse of power.

The suit revolves round the entry of GCL into Protasco in 2012 after the company promised a planned oil and gas foray and a profit guarantee for the next four years. In 2012, Protasco announced that it was buying a 63% stake in PT Anglo Slavic Indonesia (PT ASI) for US$22 million (RM92 million). The deal, however, did not materialise due to non-fulfilment of conditions.

In a statement of claim filed at the High Court in Kuala Lumpur last Friday sighted by SunBiz, the Indonesia-based company is claiming RM368 million from Chong, including loss of investment and future profits for the stake in Protasco; loss of margin to finance the acquisition of shares up to RM75 million; liability of US$55 million (RM228.5 million) to PT Anglo Slavic Utama (PT ASU), as guarantor for Chong pursuant to the investment guarantee agreement; as well as RM65 million as payment for the profit guarantee under the investment guarantee agreement.

To recap, GCL acquired a 27.11% stake in Protasco in November 2012 through its representatives for RM96.52 million or a 33% premium over the market price. The “pricey” deal was done on the assurance of Protasco’s planned venture into the oil and gas sector.

Tey Por Yee, who emerged as the largest shareholder of Protasco, was appointed to the board together with three other GCL representatives – Ooi Kok Aun, Tan Yee Boon, Mohamad Farid Mohd Yusof.

“The acquisition of the shares at a huge premium was a risk for the plaintiff, given the performance and financial situation of Protasco. Nevertheless that risk was undertaken, given that the plaintiff was under the impression that their investment was protected by the assurance given by the defendant, inter alia his guarantees and obligations under the investment guarantee agreement,” the suit said.

GCL alleged that Chong failed to ensure that Protasco was profitable, with a profit before tax of RM30 million and RM35 million in the third and fourth year under the investment guarantee agreement. A total of RM110 million profit was guaranteed over the four years.

Protasco’s earnings have been falling since 2015. For the six months to June 30, 2018, it swung into the red with a net loss of RM3.1 million against a net profit of RM11.2 million in the same period last year, dragged by lower contribution in the property development, education and construction segments.

Tey and Ooi first came under the limelight in 2014 on allegations of criminal breach of trust due to the non-disclosure of interest in a transaction involving RM85 million. However, they were granted a discharge not amounting to an acquittal by the sessions court in September 2017. They were in the news again when Protasco demanded the Attorney-General’s Chambers reopen cases against the two.

Tey ceased to be a substantial shareholder of Protasco in March 2016.

In the suit, GCL alleged that Chong entered into business transactions and decisions on operation, remuneration, payments of dividends and salaries for his own benefit at the expense and the best interests of the company.

According to Protasco’s latest annual report, Chong raked in RM2.41 million remuneration in 2017. He has been a Protasco director since May 2001 and was appointed as executive vice-chairman and managing director in February 2013. He has a 16.91% direct and a 10.31% indirect stake in the company.

Source: https://www.thesundaily.my/archive/major-shareholder-global-capital-indonesia-sues-protasco-managing-director-claims-rm-MUARCH586660

KUALA LUMPUR, Nov 30 — Indonesia company PTASU had reported polis on Dato Seri Chong Ket Pen for fraud and RM138 million cheating case. Chong Ket Pen as counter measure, claims the Indonesia party’s criminal proceeding is an attempt to pressure it to drop attempts to revive a criminal case against its former largest shareholders Datuk Larry Tey Por Yee and his associate Datuk Adrian Ooi Kock Aun. On the other hand, AG Chambers had reviewed all the evidence in totality and found that there is no evidence to support Chong Ket Pen’s allegation, in fact, the allegation is now proven a fabrication of Chong Ket Pen to prevent Chong Ket Pen himself being charge for criminal cases conducted by Chong Ket Pen and his allies.

Chong Ket Pen had on approached Global Capital to help save his career, and had signed a personal guarantee agreement on 3 November 2012 to induce Global Capital’s investors to take over Protasco largest controlling shareholding, in exchange for Chong Ket Pen to retain as Protasco’s managing director.

After about 2 years of setup to push away Protasco’s controlling shareholders and PTASU, Chong Ket Pen in 2014 fabricated a blame and a boardroom battle broke out resulting in Tey and Ooi’s removal as Protasco directors illegally. Chong Ket Pen further uses the company to sue both Tey and Ooi. Criminal lawyers found out from Global Capital news evidence, facts show that Chong Ket Pen is indeed owing RM368 million and had breach his fiduciary and statutory duties instead.

Chong Ket Pen using Protasco posted a statement, claiming Protasco (means Chong Ket Pen himself) had it “covers matters already examined during the removal of Tey and Ooi from the Protasco board in 2014, and which resulted in criminal charges against Tey and Ooi”, which is now proven it’s Chong Ket Pen’s move to prevent himself from criminal charges and avoid paying his debt in the RM368 million lawsuit by Global Capital Limited (GCL) against himself.

GCL is claiming RM368 million from Chong, including loss of investment and future profits for the stake in Protasco; loss of margin to finance the acquisition of shares up to RM75 million; liability of US$55 million (RM228.5 million) to PT Anglo Slavic Utama, as guarantor for Chong pursuant to the investment guarantee agreement; as well as RM65 million as payment for the profit guarantee under the investment guarantee agreement.

In the suit, GCL also alleged that Chong entered into business transactions and decisions on operation, remuneration, payments of dividends and salaries for his own benefit at the expense and the best interests of the company.

Chong raked in RM2.41 million remuneration in 2017, and RM4.2 million remuneration in 2016 respectively.

PETALING JAYA: According to the new claimed to be from Protasco Bhd, the troubled company is of the view that the legal suit filed by its former largest controlling shareholder against executive vice-chairman and managing director Datuk Seri Chong Ket Pen is a move to pressure the group into ending its push to revive criminal cases against former directors Tey Por Yee and Ooi Kock Aun.

In the contrary, the plaintiff Global Capital Ltd had surface evidence that Dato Sri Chong Ket Pen did signed a personal guaranteed agreement which proven the Protasco lawsuit is a sham to cover up Chong Ket Pen instead, and a move to avoid Chong Ket Pen being charged for criminal offences.

According to criminal law makers, “Aside from these cases for criminal breach of trust and cheating did by Chong Ket Pen, we also see it as pressuring Global Capital from pursuing court cases against Chong Ket Pen for breach of fiduciary and statutory duties and US$33 million (RM138 million) in breach of contract, as part of the RM368 million suit on Chong Ket Pen”.

Law makers shown that Chong Ket Pen’s 3 November 2012 personal guarantee Agreement has strong grounds to win and Global Capital remains steadfast in seeking justice and recovering what is due to stakeholders and return Protasco control to its controlling shareholder as per agreement.

The sham lawsuit fabricated by Chong Ket Pen behind Protasco had caused Protasco to suffer 4 years of financial hardship, when Chong Ket Pen was found out drawing RM4.2 million personal salary a year after he took control from Tey and Ooi, illegally. Forged sworn document were used to further manufactured fake criminal charges on the true Protasco’s beneficial owners.

However, upon the court read through the evidence in totality, had discharged the victims in sessions court in September 2017. Such lengthy evidence process had given Chong Ket Pen 4 years of cash ripping frenzy in Protasco, which saw over RM300 million cash went missing from Protasco’s balance sheet since November 2014 the day Chong Ket Pen successful put a blame and took over Protasco’s control, where RM70 million went straight to Chong Ket Pen’s own pocket.

Failing to cover up his crime, Chong Ket Pen further abuse his power and uses Protasco to manufacture excuses trying to deceive and induce the Attorney-General’s Chambers to extend Chong Ket Pen’s criminal attempt to fabricate blame on his 2 victims.

However, AG Chambers had later on November 2018 further re-affirmed and terminated the allegations, based on the criminal lawyer’s representation letter, quoting “there is no criminal activities, illegal money, nor offences” did by Tey and Ooi what so ever being alleged.

SunBiz recently reported that Indonesia-based Global Capital Ltd (GCL) filed a civil suit against Chong Ket Pen for alleged breach of contract, fraud and defraud. The suit revolves round Chong Ket Pen’s desperate approach to Global Capital, and later induced Global Capital by giving his personal guarantee on 3 November 2012 agreement, with the sole intention to deceive Global Capital’s investors to take over Protasco controlling shares in order to retain Chong Ket Pen’s position and power as Protasco’s managing director.

GCL is claiming RM368 million from Chong, including loss of investment and future profits for the stake in Protasco; loss of margin to finance the acquisition of shares up to RM75 million; liability of US$55 million (RM228.5 million) to PT Anglo Slavic Utama, as guarantor for Chong pursuant to the investment guarantee agreement; as well as RM65 million as payment for the profit guarantee under the investment guarantee agreement.

In the suit, GCL also alleged that Chong entered into business transactions and decisions on operation, remuneration, payments of dividends and salaries for his own benefit at the expense and the best interests of the company.

Chong raked in RM2.41 million remuneration in 2017, and RM4.2 million remuneration in 2016 respectively.

Original News:

Major shareholder Global Capital of Indonesia sues Protasco managing director, claims RM368m

26 OCT 2018 / 10:09 H.

PETALING JAYA: The feud at Protasco Bhd has taken a new twist as substantial shareholder Global Capital Ltd (GCL) has initiated a civil suit against the group’s executive vice-chairman and managing director Datuk Seri Chong Ket Pen for alleged abuse of power.

The suit revolves round the entry of GCL into Protasco in 2012 after the company promised a planned oil and gas foray and a profit guarantee for the next four years. In 2012, Protasco announced that it was buying a 63% stake in PT Anglo Slavic Indonesia (PT ASI) for US$22 million (RM92 million). The deal, however, did not materialise due to non-fulfilment of conditions.

In a statement of claim filed at the High Court in Kuala Lumpur last Friday sighted by SunBiz, the Indonesia-based company is claiming RM368 million from Chong, including loss of investment and future profits for the stake in Protasco; loss of margin to finance the acquisition of shares up to RM75 million; liability of US$55 million (RM228.5 million) to PT Anglo Slavic Utama (PT ASU), as guarantor for Chong pursuant to the investment guarantee agreement; as well as RM65 million as payment for the profit guarantee under the investment guarantee agreement.

To recap, GCL acquired a 27.11% stake in Protasco in November 2012 through its representatives for RM96.52 million or a 33% premium over the market price. The “pricey” deal was done on the assurance of Protasco’s planned venture into the oil and gas sector.

Tey Por Yee, who emerged as the largest shareholder of Protasco, was appointed to the board together with three other GCL representatives – Ooi Kok Aun, Tan Yee Boon, Mohamad Farid Mohd Yusof.

“The acquisition of the shares at a huge premium was a risk for the plaintiff, given the performance and financial situation of Protasco. Nevertheless that risk was undertaken, given that the plaintiff was under the impression that their investment was protected by the assurance given by the defendant, inter alia his guarantees and obligations under the investment guarantee agreement,” the suit said.

GCL alleged that Chong failed to ensure that Protasco was profitable, with a profit before tax of RM30 million and RM35 million in the third and fourth year under the investment guarantee agreement. A total of RM110 million profit was guaranteed over the four years.

Protasco’s earnings have been falling since 2015. For the six months to June 30, 2018, it swung into the red with a net loss of RM3.1 million against a net profit of RM11.2 million in the same period last year, dragged by lower contribution in the property development, education and construction segments.

Tey and Ooi first came under the limelight in 2014 on allegations of criminal breach of trust due to the non-disclosure of interest in a transaction involving RM85 million. However, they were granted a discharge not amounting to an acquittal by the sessions court in September 2017. They were in the news again when Protasco demanded the Attorney-General’s Chambers reopen cases against the two.

Tey ceased to be a substantial shareholder of Protasco in March 2016.

In the suit, GCL alleged that Chong entered into business transactions and decisions on operation, remuneration, payments of dividends and salaries for his own benefit at the expense and the best interests of the company.

According to Protasco’s latest annual report, Chong raked in RM2.41 million remuneration in 2017. He has been a Protasco director since May 2001 and was appointed as executive vice-chairman and managing director in February 2013. He has a 16.91% direct and a 10.31% indirect stake in the company.

https://thesundaily.my/archive/major-shareholder-global-capital-indonesia-sues-protasco-managing-director-claims-rm-MUARCH586660