KUALA LUMPUR (Nov 10): Protasco Bhd non-executive director Tey Por Yee has challenged the company's group managing director Datuk Seri Chong Ket Pen to show proof that he had borrowed RM20 million from the latter.

“The allegation that I borrowed RM20 million from Chong and RS Maha Niaga Sdn Bhd is downright untrue and unsubstantiated. If it is true, Chong should provide the agreement to back his claims," Tey said in a statement issued in late afternoon.

"The only loan that Chong has given [to me] is RM10 million and it was to (my private vehicle) Kingdom Seekers Ventures Sdn Bhd. We have a loan agreement drawn up and I will be happy to make it public to substantiate this,"Tey added.

“There has been no demand or any reason for Kingdom Seekers to return the loan as Chong has not fulfilled the terms of the agreement [as the PT Anglo Slavic Utama deal did not go through],” Tey said.

In a press conference this morning, Chong reiterated his denials over allegations that the RM10 million, which was issued by Protasco to Maha Niaga – a company said to be owned by Protasco’s senior management – was for his personal financial gain.

He told pressmen that he indeed lent RM20 million to Tey for the latter to acquire a substantial stake in Protasco. According to him, the RM10 million that has been channelled by Protasco to Maha Niaga was to repay the bank loans that Chong had borrowed earlier to lend to Tey.

Last Tuesday, Tey, who owns 16.68% of Protasco, had alleged Chong to have gained some RM10 million from two Protasco's Indonesia investments.

He said 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 Maha Niaga.

Tey had also claimed that a paper trail of money provided evidence that the amount paid by Protasco went 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.

Tey had filed a derivative action against Protasco and its senior management, via Kingdom Seekers Ventures, for the return of RM10 million to Protasco and general damages it purportedly suffered.