KUALA LUMPUR 9 December 2015 : Asdion Bhd 30 September quarter had delivered the first quarterly profit despite business lost at 51% subsidiary Taz Logistic due to suspected mismanagement of funds, embazement, breach of director fiduciary and statutory duty, and conflict of interest by ex-directors, naming Mohd Ridzuan and Tengku Azlan among others. "The company (Asdion) is finally back to proper business and going strong. Legal action shall recover logistics unit (Taz Logistics Sdn Bhd) missing stockyard and funds, as well as vendors personal profit guarantee back to public listed company. Leave it to the court", commented senior authority officer familiar with the issues.

Since the entry of new directors on March 2015, Asdion Bhd had experienced a series of unfortunate events, having invested over RM6 million cash buying a controlling stake in a new start up logistic business (Taz Logistic Sdn Bhd), only to found out that the business stockyard and clients were transferred to the new directors related companies (related party transaction), and left over an empty skeleton to the public listed company. According to a law enforcer, the breach of directors duty and potential wrong doing happens almost immediately after the new management came on board. The conflicting directors have since resigned a day before AGM on 28 September 2015.

"If indeed stockyard were purposely revoked so that the same yard immediately being awarded to ex-director related party, it's clearly CBD involved. Not to mention breach of capital market rules, as well as director duties" commented a law enforcer.

Parties Working in Concert an Organized Crime Operation?

The supposedly independent chairman Tan Sri Tengku Azlan is indeed not independent. Tengku Azlan has no less of controversial. The chairman's spouse is the shareholder and director of Taz Logistic Sdn Bhd, while the son is the hidden shareholder of Taz Metal Sdn Bhd, the main suspect vehicle used by Tengku Azlan to cancel Taz Logistic stockyard and transferred to Taz Metal, and subsequently assigned the business to Bestari Capital, another vehicle linked to the interest parties to act as camouflage. Port officer happens to be familiar with the matter told journalist, "Was told the senior officers in KPC were threaten by letters and memo issued by or on behalf of the interest party, which also happens to be the same parties forcing influences in the Port Authority." "There were high level of complains by many parties against Port Authority to higher regulatory authorities including MACC on power abuse and public interest violation, and there is nothing we can do about it down here", added the officer.

It was also reported that the parties working in concert with conflicting interest, lead by Ridzuan and Tengku Azlan had increased and disbursed their director fees without shareholders approval. The Managing Director was also reportedly being induced and pressured to issue payments against majority board decision. It was also reported that these newly appointed directors package was supposed to collect and paid from management fees of Taz Logistics, a common practice for holding company to derive their income.

Same Modus Operandi Of Fund Mismanagement Targeting The Blinds?

Tengku Azlan happens to be chairman of Port Authority, and also happens to be involved in another public interest entity’s scandal. On 30 April 2015, about a hundred blind people staged a peaceful protest walk in Brickfields over the alleged mismanagement of funds and assets in the Malaysian Association of the Blind (MAB).

The blind protestors also called for the resignation of MAB president Tengku Azlan Sultan Abu Bakar, deputy president Prof Veera Ramani, vice-president S Kulasegaran and CEO Ganesan Suppayah.

Hasidi Hassan, another MAB vice-president, told Malay Mail that among the protestors’ accusations were the mismanagement of funds, questionable awarding of tenders and unapproved development of MAB land in Temerloh.

Sold To Public Listed Company and Siphon Business, Stockyard and Money?

According to The Sun Daily, TAZ was awarded the license as one of the operators for dry bulk cargo stevedoring in Kuantan Port by KPC. Stevedoring is the business of loading and unloading of goods on and off shore. The license, which is regulated by a service contract between TAZ and KPC, is subject to annual renewal.

However, the company said stockyards leased under TAZ, which is the most important component of the business, were terminated and the new leases of the same stockyards are transfered to a new company linked to the minority shareholder of TAZ.

TAZ has since initiated legal action against former directors for breach of fiduciary duties, including two former key members of Asdion’s board, Tengku Azlan Ibni Sultan Abu Bakar and Datuk Mohamed Ridzuan Nor Md.

Ridzuan, who is the son of former second finance minister Tan Sri Nor Mohamed Yakcop, was CEO of TAZ. Tengku Azlan, the younger brother of the Sultan of Pahang, is also chairman of the Kuantan Port Authority, and former chairman of Asdion bhd.

“We discovered irregularities, which is the subject of the present lawsuits. It’s in court and we will be making further announcements in the future,” said a senior officer of Asdion who declined to elaborate further.

Another director, Dato Mohd Ridzuan is also a subject in dubious transactions, including short term involvement in public listed company Sersol Bhd, where Ridzuan was appointed as Managing Director on September 2013 and subsequently resigned on March 2014 (6 months). There seems to be a pattern of turbulance and short term involvement of these parties in companies they had their fingers on, mostly ends up with controvertial dealings. Ruthless and reckless that's market perceives. It may not be long they face their judgement day", commented an investment banker. Ridzuan is also a director in CWorks Systems Berhad.

On the positive side, TAZ despite being stolen stockyard and business, as well as all the staff were induced to resigned and joined Bestari Capital (another camouflage company related to ex-directors), Asdion board of directors have since appointed new management team to resume control of Taz Logistic business and build from scratch and have since recovered some of the business. "Asdion is a public listed company with strong support from customers and suppliers. The strong machinery support by sister company Asdion Project Synergy (APS) which handles sufficient machines and equipment, is a clear stand out compared to other smaller players in the port", commented an equipment vendor in the industry. "The evidence is clear and straight forward, it's matter of time Taz Logistic recovers the lost yard and business with penalties and punishment on the culprits due to losses suffered by public company during the hostile period.”, commented a law enforcer.

Perhaps Malaysia relevant authorities should start focusing on the tigers who ate people rather than the small cats they though may bites. Another chapter of serious corporate governance is again at test. Public investors only can hope for the best for current management to perform another positive quarter, despite the man made turbulance caused by opportunist.

[Press Research]

Earlier Reports

=================

http://www.themalaysianinsider.com/business/article/asdions-logistics-unit-sues-ex-directors

30 October 2015 : Asdion Bhd's 51%-owned Taz Logistics Sdn Bhd has taken legal action against former directors for breach of fiduciary duties.

In a statement to Bursa Malaysia, Asdion said it had last week initiated legal action against Taz Metals Sdn Bhd (first defendant), Tengku Azlan Ibni Sultan Abu Bakar (second defendant), Tengku Aslahuddin Ja'afar Tengku Azlan (third defendant), Tunku Jawahir (fourth defendant) and Datuk Mohamed Ridzuan Nor Md (fifth defendant).

Tengku Azlan and Mohamed Ridzuan had resigned from Asdion's board last month. Asdion said Mohamed Ridzuan had also resigned from the board of Taz Logistics last week.

"The claim against the defendants are conspiracy to injure, whilst against the 1st defendant is knowingly receipt of trust properties, the claim against the 1st, 2nd and 3rd defendants as knowingly assisting the fourth and fifth defendants to breach their fiduciary duties to Taz Logistics whilst the claim against the fourth and fifth defendants is for a breach of fiduciary duties towards Taz Logistics.

"An interim remedy is sought whereby the appointment of receiver and manager is sought over Taz Metals. The company (Asdion) is unable at this juncture to determine the impact of this action on the financial position of the company as the quantum that may be recovered is still unknown," Asdion said.

According to Asdion, Mohamed Ridzuan and Tunku Jawahir own the balance 49% in Taz Logistics, which is based in Kuantan, Pahang.

Following Mohamed Ridzuan's resignation from Asdion and Taz Logistics' boards, Asdion said it appointed Jason Minos Anak Peter as executive director of Asdion to oversee Taz Logistics' operations.

Asdion's share trade was suspended between 9am and 10am today in conjunction with the announcement. At 10.30am, the stock fell 5.5 sen or 8% to 64.5 sen for a market capitalisation of RM75.01 million. – The Edge Markets, October 30, 2015.

==================

http://www.thesundaily.my/news/1600859

Asdion unit seeks new leases for stockyards

Posted on 3 November 2015 - 05:36am

KUALA LUMPUR: ACE Market-listed Asdion Bhd, via its 51%-owned TAZ Logistics Sdn Bhd, is in the midst of applying to Kuantan Port Consortium Sdn Bhd (KPC) for a new lease of stockyards.

“All the necessary requisite licence, applications have already been put in,” Asdion director Syed Amir Syakib Arsalan Syed Ibrahim told reporters after the group’s EGM here yesterday.

TAZ was awarded the licence as one of the operators for dry bulk cargo stevedoring in Kuantan Port by KPC. Stevedoring is the business of loading and unloading of goods on and off shore. The licence, which is regulated by a service contract between TAZ and KPC, is subject to annual renewal.

However, the company said stockyards leased under TAZ, which is an important component of the business, were terminated and the new leases of the same stockyards are likely to be with a company linked to the minority shareholder of TAZ.

TAZ has since initiated legal action against former directors for breach of fiduciary duties, including two former key members of Asdion’s board, Tengku Azlan Ibni Sultan Abu Bakar and Datuk Mohamed Ridzuan Nor Md.

Ridzuan, who is the son of former second finance minister Tan Sri Nor Mohamed Yakcop, was CEO of TAZ. Tengku Azlan, the younger brother of the Sultan of Pahang, is also chairman of the Kuantan Port Authority.

“We discovered irregularities, which is the subject of the present lawsuits. It’s in court and we will be making further announcements in the future,” said Amir, who declined to elaborate further.

Newly appointed executive director Jason Minos, who is now overseeing TAZ, said stockyards that were earlier leased have been surrendered back to KPC.

“We’ve taken all necessary steps for the renewal ... licensing is not an issue. Year-to-year renewal is not an issue,” Jason said, adding that the company will continue to focus on the business in Kuantan Port.

“We’ve invested enough resources and machinery to operate there. We’ve operated there since December 2014 until today and we’ve secured sufficient connections, business partners and projects,” he explained.

Asdion executive vice chairman Mohamad Farid Mohd Yusof said it is too early to provide a clear outlook on the financial position of the loss-making group.

He said the group’s joint venture arrangement with Top Valley Properties Sdn Bhd in the property business will not see profit contribution for the next two to three years but it is latching on to sharing benefits with Top Valley from a RM297.4 million project in Selangor.

“As far as logistics is concerned, we’ve been making profits. At group level, we have the ICT subsidiary, which has not been doing too well and that has been dragging the profitability of the group. As much as we hope for better profitability in these coming quarters, at this juncture, we are not able to give an outlook or forecast,” said Farid.

Asdion group managing director and CEO Yap Tai Tee, who oversees the ICT business, was not present at the EGM to comment further.

======================

http://www.freemalaysiatoday.com/category/nation/2015/04/30/blind-protestors-demand-resignation-of-big-wigs-at-mab/

KUALA LUMPUR: About a hundred blind people today staged a peaceful protest walk in Brickfields over the alleged mismanagement of funds and assets in the Malaysian Association of the Blind (MAB).

The blind protestors also called for the resignation of MAB president Tengku Azlan Sultan Abu Bakar, deputy president Prof Veera Ramani, vice-president S Kulasegaran and CEO Ganesan Suppayah.

Hasidi Hassan, another MAB vice-president, told Malay Mail that among the protestors’ accusations were the mismanagement of funds, questionable awarding of tenders and unapproved development of MAB land in Temerloh.

The protestors started their walk at 9am along the main Brickfields road and reached the MAB complex an hour later.

The protestors were however locked out at which point they started rattling the gate, demanding it be opened for them.

The back gate was eventually opened at 10.30am and the protestors allowed in to continue their demonstration within the MAB compound.

Apparently, reports had been lodged with the Malaysian Anti-Corruption Commission, the Registrar of Societies and police earlier this month.