Tuesday, April 25, 2006

Selangor GLC Scandal: Why was the attempted voluntary winding-up?

I queried the question of why did SAP or Tajuk Modal allow PISB to be wound up by a creditor for a sum of RMRM239,468.60 when it was able and willing to absorb the losses of RM283,977.00 and liabilities of RM7,648,577.00 in exchange of the Class "A" license and the tax loss last week.
Of course no one had been be able to give an plausible explanation.
Why? Because before the winding-up petition filed by PISB/Tajuk Construction's creditor, Angkasa Nusantara, came up first time for hearing on November 24, 2005, PISB/Tajuk Construction itself had made a statutory declaration of its inability to continue business by reason of its liabilities on October 25, 2005 and commenced a voluntary winding-up by calling for a creditors' meeting on November 22, 2005.
Let's look at the chronological events as follows:-
December 31, 2003- PISB suffered losses of RM283,977. with liabilities of RM7,648,577.00 and having an unascertained amount of damages and penalty claim by the Federal Government for the delay in the Matrade Building construction for which the amount had later been announced by the Minister of Works to be RM159.8 million.
July 19, 2004- PISB was sold to Tajuk Modal Sdn Bhd for RM2.00.
November 19, 2004- PISB changed its name to Tajuk Construction Sdn Bhd
December 31, 2004- PISB/Tajuk Construction failed to submit its accounts for audit. Until the date of winding-up, no audited accounts for the year ended December 31, 2004 was produced.
October 25, 2005- PISB/Tajuk Construction declared its inability to continue business by reason of liabilities.
November 22, 2005- Creditors' meeting.
Leaving aside the creditor's winding-up petition filed by Angkasa Nusantara, the whole episode of the sale of PISB to Tajuk Modal until the winding-up proceedings seemed to be a pre-planned scheme for the purpose of clearing the liabilities of the Selangor state investment arm at the expense of the creditors, the biggest being the Federal Government.
Who had been fooled? The Selangor state government and Kumpulan Hartanah Sdn Bhd can no longer keep mum on the issue.

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