"We refer to our previous announcements on 8 January 2015, 5 February 2015 and 6 February 2015. Tanjung Offshore Berhad (“Tanjung” or “Company”) wishes to announce that it has on 11 February 2015, lodged a Police Report against two directors, Tan Sri Tan Kean Soon (“Tan”) and Muhammad Sabri bin Ab Ghani who have been suspended from their executive positions following the findings of the Company’s Independent Committee.
We also refer to the following articles: “Tan Kean Soon breaks silence over allegations at Tg Offshore”, published by Bernama on February 9, 2015; and “Tan Kean Soon declares he is blameless over Tanjung Offshore issue”.
In reference to Tan’s allegations in these articles, the Company would like to state that Tan was given ample opportunity to present his concerns before the Independent Committee. However, Tan declined to attend interviews with the Independent Committee, or to make any statement to the Committee despite several reminders to attend the interviews. When the Board of Directors (“Board”) of Tanjung formed the Independent Committee at the meeting of 8 January 2015, Tan had agreed to and consented to it. The Board also agreed to his request to include Tan's personal legal advisor as an ex officio member of the Independent Committee. Tan’s personal legal adviser attended only the initial two (2) meetings out of daily meetings conducted by the Independent Committee over a two (2) week period."
This in relation to statements like "I am certainly blameless", as made by Tan in an article in The Star. Time will tell if that is correct.
The Board of Directors of DUFU (“the Board”) wishes to announce that it had on February 4, 2015 received an allegation letter against certain Senior Management of the Group on misappropriation of the Company’s fund of approximately RM3.9 million. Further to the emergency Board of Directors’ Meeting held on February 9, 2015 to address such allegation, the Board still unable to ascertain the factuality of such allegation for the time being. In consequent thereto, the Board has set up an Independent Committee (IC), comprising 3 Independent Directors of DUFU to coordinate and oversee the investigation process of the case. The composition of the IC are as follows:-
Chairman: Mr. Ong Choon Heng;
Members: Mr. Khoo Lay Tatt and Mr. Ang Siak Keng.
The IC has been authorized to perform the following duties at its sole discretion:-
- To appoint an Investigation Auditors to investigate on the remittance of fund to U.S. during the year of 2013;
- To request the existing Auditors of the Group (Messrs. Crowe Horwath) to investigate on the remittance of fund to U.S. during the year of 2014;
- To investigate on the potential related party transactions.
KiniBiz wrote about Sasbadi, a company that only listed half a year ago:
"Law En Ruey, the chief operating officer of recently listed book publisher Sasbadi Holdings Bhd, has moved to retire from his post at the ripe old age of 30, according to an announcement on Bursa Malaysia."
When one invest in a stock one bets on the horse (read: company), but also the jockey (read: the management team). An important change has occurred so soon after a listing, which is rather remarkable.
China Stationary announced its 4th quarter results, a selection of some red flags:
- Revenue has fallen hugely this quarter to only RM 36M
- But PPE (Property, Plant & Equipment) is strangely up a lot, about RM 80M
- However, depreciation is down
- Loss over the year before tax is RM 216M
- Trade & Other Receivables is up to RM 200M, strange in relation to the low revenue
- Selling and Distribution expenses fallen from RM 34M to only RM 1M
- Cash is down almost RM 300M
- But interest received is hugely up, from RM 4M to RM 29M
Next to that, losses due to the fire, late delivery and 10% deviation in reported earnings:
The cash flow statement is also puzzling, despite the losses and spending on PPE the cash as measured in RM went actually up because of RM 455M due to the exchange rate? The Chinese Renminbi did indeed change somewhat relative to the Ringgit, but not that much.