11 September 2017 - Road maintenance and construction company Protasco Bhd had seen continuous drop in revenue, profit and especially cash flows, from year 2014 - 2017 Quarter 2. The Cash and Cash Equivalent of the group had plunged to alarming RM6 million as of Q2'FY17, a far cry from RM280 million in year 2013 (when the company Group Managing Director Chong Ket Pen took control of Protasco Bhd from former substantial shareholders). However, the same period, MD Chong Ket Pen had seen his personal salary and pay package ballooned from RM1 million per year to whopping RM4 million per year, exclude his indirect related parties, count his sons, his share option schemes, and the bizarre bank-borrowed-dividend paid mostly to himself, plus dubious transactions between Protasco Bhd and third party contractors.

Based on publicly available information on Bursa Malaysia past announcements, Chong Ket Pen upon suddenly took control of Protasco Bhd, had taken not less than RM40 million to himself (note1), out of RM280 million Cash & Cash Equivalent since year 2013. That does not include questionable RM80 million "other expenses" per year as highlighted by Malaysia Focus, indirectly slip through the audited accounts under Group MD Chong Ket Pen's personal supervision.

To cover up the Protasco Bhd board of directors mouth to act in concert conceal such devastating facts from public knowledge, latest FT2016 annual report shown Protasco Bhd board of directors and key management, count Chong Ket Pen, Chong Ther Nen & Chong Ther Vern (both Chong's sons) taking majority of the fees, the gang racked up Protasco Bhd over RM10 million a year.

Comparing to Protasco Bhd year 2002 Revenue vs Profit of RM480 million vs RM40 million; vs year 2017 Revenue vs Profit of RM1.08 billion vs RM44 million, Protasco Bhd under Chong Ket Pen "sole control" had not performed better, except busy paying money from Protasco Bhd for himself & cronies, as evidence from public records as per Bursa announcements. 

Public investors had seen Protasco Bhd share price drop from as high as RM2.20 to as low as RM0.95 in Q1'FY17. of cause, arguably if nobody is sophisticated enough to see through the smoke screen, Chong Ket Pen "has a lot of money" he has taken from Protasco to keep buying Protasco Bhd shares. 

As of 11 September 2017 latest Bursa Malaysia announcement, Chong Ket Pen bought another 100,000 Protasco Bhd Shares, total holding 108,727,039 shares or 25.63% enlarged capital.

With not many sophisticated investors in Malaysia to read between the lines, nor enough experts in the authorities to see through smoke screens and bogus drama played out by public listed company raiders, the apparent public information available on Bursa Malaysia was neither carefully studied. Paid-publicities such as The Edge and other commercial newspapers, as well as research reports based on hear-say, become common place to act as tools of slandering, promotion and speculation.

Market had anticipated such abuses which explains the difference between "owner" and "employee'. As the co-founder cum employee for Protasco Bhd former substantial shareholder, when MD Chong Ket Pen suddenly pulled the show and took control of Protasco Bhd, the released beast out of owners (shareholders) governance turn greedy and taken every shareholder for a ride by enriching himself. Compared to companies ran by actual owners such as Gadang Holdings Bhd, which made FY'2016 RM542 million Revenue and RM100 million Profits, the owner cum MD only took RM1 million per year package. Gadang entire board and management only draw RM2 million in total yearly package. The "owners" vs "employees" characteristic shall be one of the key indicator for smart investors. Do the math, the numbers speak for investors pertaining to "where the money goes".

Until the authorities took their PhD from Harvard Business School, public shareholders can only watch the looting and drama going on taking away their cheese. Invest wisely and pray for the best if the system cannot provide trust and justice to your investments. However, a piece of good news - Chong Ket Pen has a lot of money, he will keep buying shares (from money taken from you), so you also benefit a little bit when share price sustained. Good luck!

Business Hedge News

References from Bursa Malaysia announcements, including Annual Reports, quarterly reports & AGM resolutions. Chong Ket Pen taken 'publicly" from Protasco Bhd FY12-FY16 total over RM40 million to himself. Same period, Protasco Bhd Cash & Cash Equivalent vanished from RM280 million to RM6 million Q2'2017.

Note1:

Year | Chong Ket Pen personal salary per year | Dividend received 

------------------------------------------------------------------------------------------------

2016 RM4.2 million /yr (chong age 63), Plus div rm6m 

2015 RM2.8 million /yr div rm10.4m

2014 RM2.2 million /yr (after Chong took full control of Protasco) div rm4m

2013 RM1.1 million /yr div rm8m

2012 RM1 million /yr (Protasco changed ownership, Chong lost & regain power under new owners)

2011 RM1 million /yr

2010 RM1 million /yr

2009 RM850k/yr

2008 RM850k/yr

2007 RM850k/yr

2006 RM800k/yr

2005 RM800k/yr

2004 RM800k/yr

2003 RM350k/yr

2002 NIL > RM350k/yr (chong age 49) rev/profit 480m/40m

Annual report source of reference on "directors fees & remuneration"

----------------------------------------------

2016

http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=180087&name=EA_DS_ATTACHMENTS

2015 

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5079061

2014

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4740505

2013

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4378557

2012

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4371061

2011

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4365537

2010

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4348117

2003 

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4270885

Chong Ket Pen buys shares record as of 11 September 2017 Bursa announcement:

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5539961

Changes in Director's Interest (Section 219 of CA 2016)

Information Compiled By KLSE

Particulars of Director

Details of changes

Acquisition

Direct Interest