KUALA LUMPUR 10 December 2015: According to The Star, Asdion Bhd, which bought a majority stake in Taz Logistics Sdn BHd earlier this year, said the Kuantan Port operator has renewed the stevedoring licence issued to Taz. Taz had earlier sued the ex-directors for breach of contract, conflict of interest and breach of director duty, on top of mismanagement of funds and business.

The information technology and property company told Bursa Malaysia that Kuantan Port Consortium Sdn Bhd renewed the cargo handling licence for one year effective from Dec 10, 2015.

Asdion diversified into the logistics sector when it bought a 51% stake in Taz Logistics from Datuk Mohamed Ridzuan Bin Nor Md for RM6mil earlier this year. It entered into a share sale agreement with Ridzuan, who was subsequently appointed as executive director on April 8.

Ridzuan was one of the three Asdion directors who resigned in September prior to its AGM. The others were chairman Tan Sri Tengku Azlan ibni Sultan Abu Bakar (who is also Kuantan Port Authority chairman) and executive director Datuk Yen Soon Ai.

According to an English daily (not The Star), Ridzuan, who is the son of former second finance minister Tan Sri Nor Mohamed Yakcop, had guaranteed that Taz would hold the licence to handle cargo coming through Kuantan Port until December 2017. His resignation reportedly raised shareholders’ concern whether Taz’s licence would be continued till then. Market consensus was told Ridzuan via party working in concert had signed performance guarantee for 2 years, besides the license, also including non competition, profit guarantee and director duty of securing total logistic business. Earlier in April, The Star interview with Ridzuan confirmed his responsibility to secure all logistic business without conflict, where stock yard was the main component which came a long with the business, as well as other components of the services Taz already offering. "We provide total logistics surrounding stevedoring services", commented Ridzuan according to the article.

Subsequently, through the company law suit, was discovered that company stock yard was intentionally retired and immediately registered under related companies linked to Ridzuan and the retired directors, deem related party transaction. Taz's customers and staffs were also being transfered en-block, to Taz Metal Sdn Bhd the dormant company turns office-within-office vehicle, and further transfered together with the yards to another company linked to the same parties, where law maker read it a red flag of avoiding the law on purpose by siphoning legal entity repeatedly. Further alledged law breaking involving mismanagement of funds, missing contracts and agreements during Ridzuan management was discovered and currently under investigation. "Even the site office tenancy was replaced, and conflicted to what they lied to public listed company", commented a port officer who concerned.

Ridzuan and Tengku Azlan are not new to controvertial in their dealings, where the former was linked to another few corporate turbulences involving short lived public listed company directorship and dubious dealings, count Sersol Bhd as one of the dubious precedence. The later was also Kuantan Port Authority chairman, which was alleged of fund mismanagement involving the blind. On May this year, the blind association members took the issue to the street to raise their concerns.

Asdion despite the ex-directors on-going misconduct law suit, is set to grow the business under the new management. The company had secure both customers and business partners support after the the departure of conflicted directors. Angka-Tan, an associate company of Tan Chong Motor, signed new orders for 20 new trucks just weeks ago, and the company is expecting more orders next year.

[News Star]

Bursa announcement:

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4948345