Seriously if not for the name Robert Kuok, Transmile Group Berhad (KLSE: TRANMIL, stock-code 7000) could turn to penny stock today – name speaks volume. Despite huge debts amounting to RM535.8 million thanks to accounting irregularities discovered about a year ago, the tycoon continues to hold on. Rumors had been flying around for some time that Robert Kuok might take the company private but it won’t be so easy with the half a billion debts. The former Chairman, former MCA President Ling Liong Sik, just packed up and leave through the main door quietly. He didn’t even bother to clarify the scandal during shareholders’ meeting (AGM) causing the shareholders running mad over the whole incident.
Yes, the scandal erupted about a year ago and so far it is business as usual. A couple of top guns were charged but all the heads are still intact. Chances are high that the case might be dragged until everyone forgets the whole episode, until the next scandal emerges. Now talk about the next scandal, it appeared that while Transmile was busy convincing the lenders to accept the 243.8 million new shares priced at RM2.20 apiece, Transmile shareholder Pos Malaysia & Services Holdings (KLSE: POSHLDG, stock-code 4634) might be courting a new scandal on its own. Your dog or cat would tell you that the huge new shares would dilute the floating shares and hence the stock price would be affected so invest at your own risk.
Pos Malaysia has decided to hold on to its 14.99 percent stake in Transmile but will review its air cargo arrangement with Transmile when the contract expires end of March 2009. But there’re bigger problems brewing inside Pos Malaysia. The company saw its chairman (Adam Kadir) and managing director (Idrose Mohamed) resigned over speculations that there’re irregularities in land sales and award of contracts. Obviously if there were indeed such irregularities, Khazanah Nasional Berhad which holds 32.2 per cent of Pos Malaysia was not amused at all which lead to the probe by Anti-Corruption Agency at its office on Wednesday.
While everybody knows about the story behind Transmile, the second contract given to another air cargo firms raised some eyebrows. The company mentioned was Gading Sari Aviation Services Sdn Bhd, a helicopter rental company owned by royal family of Pahang. RPK claimed that Gading Sari Aviation Services which is owned by Tengku Abdullah, the son of the Sultan of Pahang does not even own any aircraft but strangely managed to secure the contract from Pos Malaysia. The juice of the scandal was that despite the contract being terminated on 31 Mar 2008 someone with great power forced Pos Malaysia to reinstate the contract. And guess who made that call? It was none other than someone from the Deputy Prime Minister’s office.
But was it true that Gading Sari Aviation Services does not own any aircraft at all? In Jan 2007, news broke that a cargo aircraft from Kuala Lumpur crash-landed at Kuching International Airport. The Boeing 737-200 aircraft was reported to be belonging to Gading Sari Aviation Services Sdn Bhd. So did RPK miss something here? Maybe since then, the company has disposed the remaining aircraft(s) and ended up with toy-planes *grin*. Anyway something else could happen soon because there were already such reports / complaints.
You might have heard cases whereby motorists who went to claim their RM625 cash rebate was shocked to find out that their money has been cashed out by unknown people (ghost riders?). With speculation that RM1 billion was passed to the hand of Pos Malaysia for the rebate system, it’s a matter of time before those greedy eyes were rolling with dollar-sign. One thing leads to another and before you could spell your name you might hear another scandal, not that “scandal” is something abnormal in this country.
Other Articles That May Interest You …
- Transmile’s sudden Spring to Life, what’s in the pot?
- No fees but shareholders fuming Ling Chicken Out
- Learn from Mistakes – better days ahead for Transmile
- Ling Liong Sik Resigned (or Fired?) from Transmile
- Married-Deal – A Defect in Stock Transaction
- A case of Little Crime overshadows Big Crime
- TRANSMILE in Loss since 2005, Lower 2004 Profit