Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 30): Protasco Bhd's non-executive director Tey Por Yee has called to convene an extraordinary general meeting (EGM) to remove company's managing director Datuk Seri Chong Ket Pen from the board.

In a statement issued late afternoon, Tey said the EGM will be held on Nov 28. He will be furnished with the facts and evidence of Chong's wrongdoing, in relating to two Protasco's Indonesia investments, directly to the shareholders, according to the statement.

"I am bringing the facts and evidence of Chong's wrongdoing directly to the shareholders ," he said, adding that he will be using his own money to pay for the cost of holding the EGM.

Meanwhile, two Protasco substantial shareholders, want to remove Tey and his counterpart Ooi Kock Aun.

To recap, the shareholder tussle started when Protasco last month filed a suit against Tey, Ooi Kock Aun and PT Anglo Slavia Utama to claim back US$22.2 million (RM71.9 million) it paid in its foiled attempt to buy a 63% stake in oil and gas outfit PT Anglo Slavic Indonesia (PT ASI).

Protasco claimed in a filing with Bursa Malaysia that naming Tey and Ooi as defendants in the suit was premised on the breach of their fiduciary and statutory duties, including the duty to disclose their interests in the transaction, conspiracy to defraud Protasco and the "making of secret profit".

However, Tey denies that he is holding any shares in PT ASU and PT ASI.

Tey, who owns 16.68%, in a press conference on Tuesday, alleged that Protasco through its subsidiaries had paid a total of RM16 million to PT Goldchild Integritas for bitumen and coal trading with Indonesia. Of this RM16 million, RM10 million was channelled back to RS Maha Niaga Sdn Bhd, whose shareholders are senior management executives of Protasco.

Tey claimed that a paper trail of money provided evidence that the amount paid by Protasco was flowed through layers of companies before a RM10 million cheque was drawn and paid for the benefit of Maha Niaga's account with United Overseas Bank (Malaysia) Bhd.

As such, Tey has filed a derivative action against the company and its senior management, via his private vehicle Kingdom Seekers Ventures Sdn Bhd, for the return of RM10 million to Protasco and general damages purportedly suffered by it.

However, Chong denies all the allegations.

“Clearly, this new proceedings amounts to nothing more than an attempt to smear and tarnish my reputation, apart from seeking to divert attention away from the earlier on-ongoing legal proceedings filed by Protasco Bhd against Tey and others,” Chong said in a joint press statement.

Chong added that he has appointed solicitors to “vigorously defend” the suit against the civil suit and will lodge a police report in respect of those allegations.

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