THE STORY OF CHONG KET PEN - THE MAN WHO BITES THE HAND WHO FEEEDS


Salam Budaya!



Trust is something that rare to be found nowadays. Many cases happen when someone has already think that they trust each other but one of them ruin it. That reminds what my parents say, "Trust No One" or even there's a proverb that I always state in every social media I own, "Friends are close, Enemies are closer".


Unfortunately, we, are sometimes failed to recognize which one of it. Just like Mr. Chong Ket Pen.


The Oil and Gas industry of neighboring countries Indonesia and Malaysia is currently being a highlight, as major shareholder of Protasco Berhad, Global Capital Limited filed a civil suit against the company’s Group Executive Vice-Chairman and Managing Director, Dato’ Sri Chong Ket Pen for alleged abuse of power.

The suit revolves around an Investment Guarantee Agreement initiated by Chong Ket Pen with an Indonesian venture capital and asset management company Global Capital Limited on November 3rd, 2012. Chong Ket Pen, under his personal capacity approached Global Capital Ltd to assist in buying over major shares of Malaysia’s Protasco Bhd from its former beneficial owner – also known as business take-over. In return, shall nominate Global Capital Ltd’s investors as Board member in Protasco Bhd, and all that he wanted is to maintain his position as the company’s Group Managing Director.

In the deal, Chong Ket Pen assured Global Capital Ltd that he will propose to the Board of
Protasco Bhd to undertake a new oil and gas business subsidiary. Following that, Global Capital Ltd acquired a 27.11% stake in Protasco – a deal concluded within one month of discussions and negotiations, for USD 24 million or a 33% premium over the market price. The deal, viewed as a ‘premium’ was done on the assurance of Protasco Bhd’s planned venture into the oil and gas sector.

As stated in the suit: “The acquisition of the shares at a huge premium was a risk for the plaintiff, given the performance and financial situation of Protasco Bhd. Nevertheless, that risk was undertaken, given that the plaintiff was under the impression that their investment was protected by the assurance given by the defendant, inter alia his guarantees and obligations under the Investment Guarantee Agreement”.

Chong Ket Pen invited and arranged for PT ASU and Protasco Bhd to join into a Sales and Purchase Agreement, which states, first, Protasco Bhd will acquire 76% of the shares ownership in PT Anglo Slavic Indonesia (PT ASI) with a value of USD 55 million (Rp. 800 billion), from its parent company PT ASU. Second, Chong Ket Pen will complete the agreement process within a six-month deadline.


Dato’ Sri Chong Ket Pen is the Group Executive Vice-Chairman and Managing Director of Protasco Berhad.

But this man did something awful, he delayed the deal from six months to 18 months, inducing PT ASU to accept a revised deal of merely a USD 22 million deal or 63% equity. Even Chong Ket Pen’s son, Kenny Chong Ther Nen – who was entrusted by his father to execute the logistics of the deal, colluded with PT ASU Former Director Tjoe Yudhis Gathrie to forge false documents, to make it look as if PT ASU has failed to comply to the terms of the SPA. Furthermore, Chong Ket Pen together with Tjoe Yudhis Gathrie also fabricated misleading allegations against PT ASU to put blame on PT ASU’s alleged failure, and therefore the SPA was terminated.

The SPA termination has caused PT ASU to have insufficient capital to proceed with the oil production in Aceh and experiencing major opportunity losses. Apart from that, Pertamina has also ended the award of PT ASU over the land in Aceh as it has passed the 2-year award period.

This cooperation is a continuation of an Investment Guarantee Agreement initiated by Chong Ket Pen with an Indonesian venture capital and asset management company Global Capital Limited on November 3rd, 2012. Chong Ket Pen, under his personal capacity approached Global Capital Ltd to assist in buying over major shares of Malaysia’s Protasco Bhd from its former beneficial owner – also known as business take-over. In return, shall nominate Global Capital Ltd’s investors as Board member in Protasco Bhd, and all that he wanted is to maintain his position as the company’s Group Managing Director.

In the deal, Chong Ket Pen assured Global Capital Ltd that he will propose to the Board of
Protasco Bhd to undertake a new oil and gas business subsidiary. Following that, Global Capital Ltd acquired a 27.11% stake in Protasco – a deal concluded within one month of discussions and negotiations, for USD 24 million or a 33% premium over the market price. The deal, viewed as a ‘premium’ was done on the assurance of Protasco Bhd’s planned venture into the oil and gas sector.


On September 24, It was also discovered that Chong Ket Pen had made the proposal for the transaction of Protasco’s shares without disclosing his personal interest in obtaining control over Protasco, through the Investment Guarantee Agreement signed on 3 November 2012.

Due to this discovery, Chong Ket Pen, 2 months later, maneuvered by putting the blame on GCL investor Tey Por Yee. Chong Ket Pen together with Tjoe Yudhis Gathrie fabricated false information by alleging Tey Por Yee for conducting insider trading, accusing him of discreetly being the beneficial owners of PT ASU.

Chong Ket Pen went to a Malaysian prominent business media The Edge. There, Chong Ket Pen shared false reports and misleading facts as well as confidential information, which was first published by The Edge on Sept 10th, 2018. The news articles heavily contain inaccurate information.

Finally, Global Capital Limited Indonesia (GCL) filed a police report against The Edge for misreporting, illegally obtaining confidential information, fraudulently publishing false or inaccurate information, especially the one that was deliberately intended to deceive and instill authorities to use the law to cause injury of another person.

The false allegation fabricated by Chong Ket Pen and Tjoe Yudhis Gathrie was clarified when the real PT ASU Indonesian beneficial owner issued an affidavit, proving that Tey Por Yee is not the owner nor in control of PT ASU.


It has also been proven that the involvement of Tey Por Yee with PT ASU was upon Chong Ket Pen’s request, in which Chong Ket Pen placed the order and engaged GCL himself through the 3 November 2012 Personal Guarantee Agreement. Thus, the false allegation fabricated by Chong Ket Pen against Tey Por Yee was merely part of Chong Ket Pen’s plan in the first place to gain control over Protasco, and putting the blame on GCL and its investor Tey Por Yee.


The Malaysian Attorney General’s Chambers (AG Chambers) dropped the malicious charges against Tey Por Yee after reviewing the evidence submitted by GCL, while proving the false documents brought by Chong Ket Pen as sham documents.

They filed a complaint against Chong Ket Pen and reported it to the Malaysian Attorney General's Office for a lawsuit amounting to Rp1.28 trillion, for violating the contract of the Investment Guarantee Agreement.

It was also revealed that so far Chong Ket Pen had withdrawn unrealistic amounts of salaries from Protasco Bhd, with the largest amount valued at Rp. 15 billion per year (evidence in the 2016 financial year), after he was authorized the company.

This shows that the act of conspiracy by Chong Ket Pen was carried out solely to achieve his personal interests, namely to gain self-satisfaction and full power over Protasco Bhd. However, he did all that at the expense of existing stakeholders, including PT ASU.

Bursa Malaysia public information also revealed that Chong Ket Pen has been drawing unrealistic remunerations from Protasco Bhd at the peak of USD 576,000 in 2017 and USD 1 million in 2016 respectively, after he gained control over the company. This suggested that Chong Ket Pen entered into business transactions and decisions on operation, remuneration, payments of dividends and salaries for his own benefit at the expense and the best interests of the company.

Global Capital Ltd came into the thought that Chong Ket Pen has failed to ensure that Protasco Bhd was profitable, with a profit before tax of USD 7.1 million and USD 8.3 million in the third and fourth year under the Investment Guarantee Agreement. Aside from that, a total of USD 26.2 million profit was also guaranteed over the four years.

Furthermore, it was also reported that Protasco Bhd had recently lost a huge contract, as its subsidiary HCM Engineering Sdn Bhd received a letter of termination from Turnpike Synergy Sdn Bhd (TSSB) due to delays in the project, suggesting a USD 622,000 earnings impact. Following this, CIMB IB Research has therefore maintained its “Reduce” rating on Protasco Bhd at MYR 20 cents with a lower target price of MYR17 cents (from MYR 30 cents). Weak job execution and poor contract visibility is likely to weigh on its shares price.



We'll see what will happen with this feud, but what I really got from this news is


Hope we all learned from the situation and be the person as honest as possible.

Salam Budaya!

Komentar

  1. Nama PT nya ngeselin ya, PT ASU, hahahahaha.... Keren. Keren. Mantul pisan

    BalasHapus
    Balasan
    1. Nah itu nglawan kok yang suka makan sayur kol. Hahahaha

      Hapus
    2. Hahaha, bener, nama PT-nya gak banget 😀

      Hapus
  2. I learn alot fr this story, but PT ASU sounds odd for me, hihihi

    BalasHapus
  3. your english progressing so well.. I am totally amazed.. <3

    BalasHapus
  4. oh, i knew his story from this article. awesome!

    BalasHapus
  5. Salah satu pelajaran budaya yg penting

    BalasHapus
  6. This guys.. ah... perlu belajar banyak ttg pentingnya etik dalam berbisnis ya.. ga cuma ngejar profitnya aja...

    BalasHapus

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