Caught Between the Hats on Professional Reports

Protasco Bhd. Chairman and MACC Chairman of OEP Tan Sri Hadenan Abdul Jalil

The Chairman of the Protasco Berhad board Tan Sri Hadenan A Jalil is getting tangled and entwined between the web of several hats in the listed company’s boardroom tussle, especially now the technical due diligence on the concession for the Acheh oil deal surfaced.

The Star reported that Protasco Berhad was given a USD22 million profit guarantee spread over four years for the deal in Kuala Simpang Timur in Acheh. It is impossible that Hadenan is ignorant of this supplementary agreement.

KPMG report on the due diligence for the Acheh deal

KPMG report on the due diligence for the Acheh deal

What is more intriguing, Hadenan who preside over Protasco Berhad’s BoD must be aware of the KPMG valuation report on the due diligence made on this deal and project.

Upon the various documents presented as part of the technical, financial and legal due diligence made, Hadenan played along with Protasco Berhad Managing Director Dato’ Sri Ir. Chong Ket Peng’s management decision to take Tey and Ooi to court in September.

Some of the BoD of Protasco Bhd; Tan Sri Hadenan A Jalil, Dato' Ir. Chong Ket Peng, Dato' Ibrahim Mohd. Noor and Larry Tey

Some of the BoD of Protasco Bhd; Tan Sri Hadenan A Jalil, Dato’ Ir. Chong Ket Peng, Dato’ Ibrahim Mohd. Noor and Larry Tey

This action was preceded with Ir. Chong’s campaign using mainstream media mainly the business papers to paint a black picture against Tey and Ooi. Washing dirty linen as part of a boardroom tussle would just invite reaction and reciprocity, which would spiral downwards perception on the Group.

Then more legal suits against BoD member Adrian Ooi mounted by Protasco Berhad led  Ir. Chong, a few days ahead of the management requested EGM to remove Tey and Adrian Ooi from the BoD.

NST story:

Protasco sues PT Goldchild

22 NOVEMBER 2014 @ 12:26 AM

PROTASCO Bhd has filed a legal suit against PT Goldchild Integritas Abadi and director Ooi Kock Aun to recover a US$5.16 million (RM17.3 million) deposit under a coal trading deal in Indonesia.

In the suit filed at the Shah Alam High Court yesterday, Protasco also seeks a declaration that the coal trading agreement is void and in breach of the Companies Act, 1965.

The company had agreed to undertake coal trades with PT Goldchild under an agreement on February 4 this year via Protasco Trading Sdn Bhd which paid a US$5.16 million deposit to PT Goldchild. The deposit was to be deducted in stages against future coal trades.

Protasco said it had discovered that both Ooi and another director Tey Por Yee have interests in PT Goldchild. The discoveries were made after Protasco filed its first legal suit against Ooi and Tey in September 2014.

Ooi was a director of Protasco at the time the company entered into the coal-trading agreement with PT Goldchild, but did not disclose his interest in the transaction which he was under obligation to.

“Protasco has been advised that by Ooi’s failure to declare his personal interest contravenes Section 132E of the Companies Act, therefore the coaltrading agreement has been rendered void. Ooi is also personally liable to account to the company for any direct or indirect gain made from the agreement and/or to indemnify the company for losses and/or damages suffered,” Protasco said in a statement.

Protasco had earlier in September filed a suit against PT Anglo Slavic Utama to recover US$27 million in monies paid, and against Tey and Ooi for conspiracy to defraud, hiding their beneficial interests in PT ASU, making secret profits and breach of their fiduciary and statutory duties.

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Amongst the perception that is haunting Hadenan at the moment that he is walking in the shadows of Malaysian former Corporate King Tun Daim Zainuddin.

Dato' Ibrahim Mohd. Nor receiving a souvenir from Dato' Sri Ir. Chong Ket Peng at Protasco's annual dinner November 2013

Dato’ Ibrahim Mohd. Nor receiving a souvenir from Dato’ Sri Ir. Chong Ket Peng at Protasco’s annual dinner November 2013

Some punters already speculating that there are some hanky-panky. The market-talk also include some kickbacks arisen from the deals that were brokered upon the departure of Tun Daim’s known corporate operative Dato’ Mohd. Ibrahim Mohd. Nor from Protasco Bhd., via Cruise Dream Sdn. Bhd.

Considering there are technical due diligence documents to back against Protasco MD Dato’ Sri Ir. Chong Ket Peng’s opposition to scuttle the Acheh oil and gas concession deal, there are questions raised what is Hadenan’s role in this.

PT Anglo Slavic Indonesia, which Protasco Bhd. owns 63% holding and management control is reflected in the listed co's 2013 Annual Report

PT Anglo Slavic Indonesia, which Protasco Bhd. owns 63% holding and management control is reflected in the listed co’s 2013 Annual Report

Protasco is a company which is known to be have awarded contracts to maintain Federal roads.

It is rather peculiar for former Auditor General Hadenan who now chairs the MACC Evaluation Operation Panel, to have accepted the job as Chairman of Protasco knowingly that these sort of businesses and companies are often laden with the burden for the practice of corruption.

Utusan Malaysia business section yesterday

Utusan Malaysia business section yesterday

More over Hadenan accepted the appointment when it was speculated that Tun Daim was involved in the company.

Like it or not, public perception on the company, nature of business and key personalities continues especially in the diversity of the Group’s involvement, which include contracts from the Federal Government.

Now that there are boardroom tussle and allegations being flung against each other which include a report made with the MACC against the Protasco Group MD Ir. Chong Ket Peng and Hadenan been seen to side-stepped this bit, the perception on diminishing corporate governance and integrity compounds.

*Updated midnight 

Published in: on November 21, 2014 at 12:00  Comments (6)