Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 10): Protasco Bhd's top management, which is in a legal tussle with two of its non-executive directors Tey Por Yee and Ooi Kock Aun, has called on the duo not to confuse the public and shareholders over the recovery of RM10 million owed to the group.

In a media briefing today, Protasco executive vice-chairman and group managing director Datuk Seri Chong Ket Pen reiterated his denials over allegations that the RM10 million, which was issued to RS Maha Niaga Sdn Bhd – a company said to be owned by Protasco’s senior management – was for his personal financial gain.

He stressed that the money was a repayment for the bank tranche of loan.

"He (Tey) did not say that he borrowed a total of RM20 million from me," said Chong, adding that the money was for Tey to complete his purchase of Protasco's share.

Chong explained that the RM20 million loan included a RM10 million short term loan with a bank via his personal company, RS Maha Niaga.

"I lend him the other half via JF Apex Securities Bhd through a margin financing facility in my own name. The loan was secured using my own Protasco shares and my personal guarantee."

When asked why he had lent the money to Tey, Chong replied: "At that time, I viewed him as a strategic investor that would be beneficial to the group, and (so) I agreed to help him organise the loan for RM20 million."

He added that Tey has yet to pay him the RM10 million under JF Apex Securities.

On the lawsuit filed by Tey via his private vehicle Kingdom Seekers Venture Sdn Bhd, Chong said he has filed his defence to the Kuala Lumpur High Court this morning.

"I believe Tey's suit is manupulative and aimed at confusing people and misdirecting people.

"The RS Maha Niaga's suit is a desperate move, because he has revealed his modus operandi, his pattern of transactions, as well as his association with all these entities," said Chong.
 

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