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YIP KUM FOOK: Pempena ordered to wind up Posted on 8 July 2012 - 09:55pm Last updated on 9 July 2012 - 12:05pm R. Nadeswaran citizen-nades@thesundaily.com KUALA LUMPUR (July 8, 2012): The controversial and financially troubled business arm of Tourism Malaysia – Pembangunan Pelancongan Nasional Sdn Bhd (Pempena) – has ceased to exist. Last month, the High Court ordered the company to be wound up and a liquidator appointed to manage its affairs. The winding up petition, which was undefended, was moved by Kah Bintang Auto Sdn Bhd after Pempena, a subsidiary of the Tourism Ministry, failed to pay RM12.4 million for the purchase of 120 units of Hyundai Sonata for its taxi service. According to court papers filed at the High Court registry, Kah Bintang claimed Pempena failed to pay the money ordered by another High Court in April last year after a protracted hearing in a breach-of-contract suit in which both parties were represented. Following the judgment, the law firm representing Pempena, Ringo Wong and Associates, discharged itself and Messrs Hafirizam Wan and Aisha Mubarak was appointed its lawyers. In his affidavit, Kah Bintang managing director Datuk Robert Wong said letters of demand which were sent by registered post in September last year to both the registered and business addresses were returned. However, the same letters sent to four of its directors – Datuk Yip Kum Fook(Who is bad name in Buddhist, MCA GOMBAK), Datuk Donald Lim Siang Chai, Syed Abdul Rahman and Jaigani Jaafar – were acknowledged as received. Having had no response, Kah Bintang published advertisements of winding up in two national newspapers and hearing for the petition was set for June 13. Pempena was not represented at the hearing and accordingly, the court gave the company 14 days to pay up or be wound up. As of June 27, no monies were forthcoming and the liquidator is to be appointed in the next few days. Meanwhile when contacted, Lim, who is the deputy finance minister, told theSun that Pempena's directors had given the company's chief executive officer instructions upon receiving notice of the winding-up petition. The CEO had been told to instruct the lawyers to file a defence, but they did not, said Lim who did not respond to further attempts at getting clarification. Pempena was set up in 1976 to carry out tourism-related business and development. Over the years, it hit the headlines after various bad deals came to light, resulting in massive losses for the company. In 2009, an independent audit ordered by the ministry showed only a few of the 24 companies invested in by Pempena showed profits in the past three years. On May 29, theSun reported that Pempena's stake in the controversial loss-making restaurant Awana Chelsea in London had been sold. It had previously closed its doors on similar outlets in Beijing and Hyderabad. According to the auditor-general's report tabled last year, Pempena's venture in opening the London restaurant had brought "dismal results", raking in only £13,000 (about RM64,000) in 2007, far from its annual target of £520,692 (RM2.5 million). The report also noted that Pempena had yet to get any returns from its RM3.73 million investment.
No benefit in keeping Pempena afloat In September last year, four directors of Pembangunan Perlancongan Nasional Sdn Bhd (Pempena) Datuk Yip Kum Fook (MCA GOMBAK, who is BAD name in Buddhist) Datuk Donald Lim Siang Chai, Syed Abdul Rahman and Jaigani Jaafar – were served with letters of demand for payment of more than RM12.4 million owed by the company. The letters from lawyer Joginder Singh, who was acting for Kah Bintang Auto Sdn Bhd were sent by registered post. On receiving the letter, one of them, Lim, the former deputy toursim minister and current deputy finance minister, contacted the CEO of Pempena and asked him to act on the demand. For a good eight months, nothing happened. No effort was made to contact the motor company or negotiate a settlement. Failing to get a response, Kah Bintang published notice of an intended winding up petition in two national newspapers on May 28. The petition was set to be heard on June 13. At the hearing, the petition was undefended as neither Pempena nor its lawyers made an appearance. The court allowed the petition and asked that Pempena be given another 14 days to pay up. On June 27, that short lease of life for the company expired and Pempena ceased to exist. Yesterday, akin to closing the stable door after the horses have bolted, Malaysian Tourism Board chairman Datuk Victor Wee announced that Pempena would be applying for a stay of the winding up order this week. The decision, he said, was made after a meeting with the management of Pempena last Friday. A new solicitor will be appointed to apply for a stay and work out an amicable settlement. He was responding to theSun’s front page report which said the High Court had ordered the company to be wound up after failing to pay RM12.4 million for the purchase of 120 units of Hyundai Sonata. When asked if these actions and the subsequent embarrassment to the government could have been avoided if Pempena had complied or responded to letters from Kah Bintang and its lawyer, Wee declined to comment, saying: “This is something that only Pempena can answer.” So, the questions are: “Why did the Pempena CEO ignore the letters, and the call from Lim who was then a director of the company? Was it incompetency or sheer arrogance or total defiance of a lawful directive? Why did Pempena not act after the notice was published? More importantly, where is Pempena going to find RM13 million (including interests and costs) to pay the motor company? Why should it come from the tourism promotion budget when all fingers point to the directors, who by virtue of their positions should be held responsible for this fiasco? There’s no benefit in keeping Pempena afloat as it has not contributed in anyway to enhance tourism and related products. In short, it has been bleeding financially and has become a burden to Tourism Malaysia. The best option is to dispose the assets, settle the debts and close shop so that it does not lose more money. Throwing good money after bad does not make good business sense. -thesundaily.
YIP KUM FOOK: Pempena ordered to wind up
ReplyDeletePosted on 8 July 2012 - 09:55pm
Last updated on 9 July 2012 - 12:05pm
R. Nadeswaran
citizen-nades@thesundaily.com
KUALA LUMPUR (July 8, 2012): The controversial and financially troubled business arm of Tourism Malaysia – Pembangunan Pelancongan Nasional Sdn Bhd (Pempena) – has ceased to exist.
Last month, the High Court ordered the company to be wound up and a liquidator appointed to manage its affairs.
The winding up petition, which was undefended, was moved by Kah Bintang Auto Sdn Bhd after
Pempena, a subsidiary of the Tourism Ministry, failed to pay RM12.4 million for the purchase of 120 units of Hyundai Sonata for its taxi service.
According to court papers filed at the High Court registry, Kah Bintang claimed Pempena failed to pay the money ordered by another High Court in April last year after a protracted hearing in a breach-of-contract suit in which both parties were represented.
Following the judgment, the law firm representing Pempena, Ringo Wong and Associates, discharged itself and Messrs Hafirizam Wan and Aisha Mubarak was appointed its lawyers.
In his affidavit, Kah Bintang managing director Datuk Robert Wong said letters of demand which were sent by registered post in September last year to both the registered and business addresses were returned.
However, the same letters sent to four of its directors – Datuk Yip Kum Fook(Who is bad name in Buddhist, MCA GOMBAK), Datuk Donald Lim Siang Chai, Syed Abdul Rahman and Jaigani Jaafar – were acknowledged as received.
Having had no response, Kah Bintang published advertisements of winding up in two national newspapers and hearing for the petition was set for June 13.
Pempena was not represented at the hearing and accordingly, the court gave the company 14 days to pay up or be wound up. As of June 27, no monies were forthcoming and the liquidator is to be appointed in the next few days.
Meanwhile when contacted, Lim, who is the deputy finance minister, told theSun that Pempena's directors had given the company's chief executive officer instructions upon receiving notice of the winding-up petition.
The CEO had been told to instruct the lawyers to file a defence, but they did not, said Lim who did not respond to further attempts at getting clarification.
Pempena was set up in 1976 to carry out tourism-related business and development.
Over the years, it hit the headlines after various bad deals came to light, resulting in massive losses for the company.
In 2009, an independent audit ordered by the ministry showed only a few of the 24 companies invested in by Pempena showed profits in the past three years.
On May 29, theSun reported that Pempena's stake in the controversial loss-making restaurant Awana Chelsea in London had been sold.
It had previously closed its doors on similar outlets in Beijing and Hyderabad.
According to the auditor-general's report tabled last year, Pempena's venture in opening the London restaurant had brought "dismal results", raking in only £13,000 (about RM64,000) in 2007, far from its annual target of £520,692 (RM2.5 million).
The report also noted that Pempena had yet to get any returns from its RM3.73 million investment.
No benefit in keeping Pempena afloat
ReplyDeleteIn September last year, four directors of Pembangunan Perlancongan Nasional Sdn Bhd (Pempena) Datuk Yip Kum Fook (MCA GOMBAK, who is BAD name in Buddhist) Datuk Donald Lim Siang Chai, Syed Abdul Rahman and Jaigani Jaafar – were served with letters of demand for payment of more than RM12.4 million owed by the company.
The letters from lawyer Joginder Singh, who was acting for Kah Bintang Auto Sdn Bhd were sent by registered post. On receiving the letter, one of them, Lim, the former deputy toursim minister and current deputy finance minister, contacted the CEO of Pempena and asked him to act on the demand.
For a good eight months, nothing happened. No effort was made to contact the motor company or negotiate a settlement. Failing to get a response, Kah Bintang published notice of an intended winding up petition in two national newspapers on May 28. The petition was set to be heard on June 13.
At the hearing, the petition was undefended as neither Pempena nor its lawyers made an appearance. The court allowed the petition and asked that Pempena be given another 14 days to pay up. On June 27, that short lease of life for the company expired and Pempena ceased to exist.
Yesterday, akin to closing the stable door after the horses have bolted, Malaysian Tourism Board chairman Datuk Victor Wee announced that Pempena would be applying for a stay of the winding up order this week.
The decision, he said, was made after a meeting with the management of Pempena last Friday. A new solicitor will be appointed to apply for a stay and work out an amicable settlement.
He was responding to theSun’s front page report which said the High Court had ordered the company to be wound up after failing to pay RM12.4 million for the purchase of 120 units of Hyundai Sonata.
When asked if these actions and the subsequent embarrassment to the government could have been avoided if Pempena had complied or responded to letters from Kah Bintang and its lawyer, Wee declined to comment, saying: “This is something that only Pempena can answer.”
So, the questions are: “Why did the Pempena CEO ignore the letters, and the call from Lim who was then a director of the company? Was it incompetency or sheer arrogance or total defiance of a lawful directive? Why did Pempena not act after the notice was published?
More importantly, where is Pempena going to find RM13 million (including interests and costs) to pay the motor company? Why should it come from the tourism promotion budget when all fingers point to the directors, who by virtue of their positions should be held responsible for this fiasco?
There’s no benefit in keeping Pempena afloat as it has not contributed in anyway to enhance tourism and related products. In short, it has been bleeding financially and has become a burden to Tourism Malaysia.
The best option is to dispose the assets, settle the debts and close shop so that it does not lose more money. Throwing good money after bad does not make good business sense.
-thesundaily.