DAP lawmaker reveals Perak Corp unit under winding-up has two different accounts, suggests attempt to cheat creditors

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(From left) Menglembu assemblyman Steven Chaw, Keranji assemblyman Chong Zhemin, Sungai Rapat assemblyman Datuk Seri Mohammad Nizar Jamaluddin and Jelapang assemblyman Cheah Poh Hian showing the documents related to the financial positions of PCBD at the Banguan Perak Darul Ridzuan. — Picture by John Bunyan
(From left) Menglembu assemblyman Steven Chaw, Keranji assemblyman Chong Zhemin, Sungai Rapat assemblyman Datuk Seri Mohammad Nizar Jamaluddin and Jelapang assemblyman Cheah Poh Hian showing the documents related to the financial positions of PCBD at the Banguan Perak Darul Ridzuan. — Picture by John Bunyan

IPOH, Jan 10 — Perak assemblyman Chong Zhemin today disclosed two sets of financial accounts held by Perak Corporation Berhad Development (PCBD), which he claims caused the state government-owned company’s scheme of arrangement to collapse, putting it under a voluntary winding-up.

Chong said that PCBD, a subsidiary company of Perak Corporation Berhad (PCB), issued two different sets of accounts dated on the same day showing two different financial positions.

“The quarterly report ended on June 30, 2020 for PCB Group shows a total non current assets of RM404,183,000 and current assets of RM367,248,000 amounting to total assets of RM771,431,000.

“However in the explanatory notes of the scheme of arrangement dated on the same day 30 June, 2020, the non-current assets declared was RM99,220,199 and current assets RM60,457,014 which gives a total of RM159,677,213,” he said in a press conference held at the state Opposition chief’s office in Bangunan Perak Darul Ridzuan.

“Why is the total assets declared in the scheme of arrangement so much lower than the quarterly report which is RM611.75 million or 79.3 per cent lower?

“It is now crystal clear that the scheme of arrangement proposed by PCB and PCBD is fraudulent and does not treat its creditors and joint venture partners fairly,” he added.

The Keranji assemblyman also alleged that there were fraudulent attempts made by the company in undervaluing the lands under the scheme of arrangement.

“Let me quote one line in the scheme of arrangement where there is a piece of land in Tanjung Malim PN394961 Lot 20402 in which the book value is reported RM37 million, and the net realisable value is estimated to be RM20.35 million.

“However there is a JV agreement signed on September 10, 2019 to sell the piece of land for RM79.275 million,” he said.

“How could the company justify the RM20.35 million net realisable value of the land when there is an agreement to sell the piece of land for RM79.275 million?” he asked.

He claimed this proves that the scheme of arrangement is fraudulent and there is a concerted effort to conceal the company assets to cheat the creditors and justify paying them only 10 sen for every ringgit owed.

Chong also said the company’s board of directors need to explain the appointment of Baker Tilly as receiver as their independence is in doubt.

“PCBD scheme of arrangement which was proposed by Ferrier Hodgson has already collapsed and Baker Tilly which belongs to the same group as Ferrier Hodgson will not be able to act as a receiver independently.

“Would Baker Tilly liquidate PCBD as proposed in the scheme of arrangement by Ferrier Hodgson by paying the creditors only 10 sen for every ringgit owed?

“I urge the PCB board to explain their insistence in appointing Baker Tilly as the receiver,” he said.

Chong urged the company’s board of directors to come clean on the variance in these two public documents.

“I also urge the authorities involved to investigate this matter thoroughly to protect the interest of the minority shareholders and company creditors,” he said.

“It would just be a matter of time when PCB follow the footstep of PCBD by winding up and all the state strategic assets including Lumut Port and Casuarina Hotel would be auctioned off cheaply,” he added.

He also said that Perak Mentri Besar Datuk Seri Saarani Mohammad should immediately step in and take corrective action to avoid the potential catastrophe.

Separately, Perak Amanah deputy chairman Datuk Seri Mohammad Nizar Jamaluddin called for a special state assembly meeting to be held to debate the matter.

“We want the state government to explain the status of PCB and PCBD to all the assemblymen,” he said.

“How can a government-linked company have two sets of financial accounts? This is not a backdoor company. What happened here is daylight robbery.

“If the third party and securities commission find about this, they could drag the state government and fine them,” he added.

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