WELL, the answer to this question is very simple. The reason is because we have had RM46.94 million come into the company in a manner that makes no economic sense.
SOME 62.592 million warrants were converted into 62.59 million mother shares at a conversion price of 75 sen per conversion, meaning that if this RM46.94 million was used to buy the mother shares directly, the buyers would end up owning 33 per cent of the company.
INSTEAD what has happened is this supposedly minority group choose to pay a premium of 300 per cent to ensure money goes into the company, while they themselves have zero control in running the company.
ARE there any precedent for the authorities to freeze the banking account of a public listed company? Yes there is. READ : MACC freeze Caely Holdings Bhd, banking accounts.
BY freezing the accounts of Revenue Group, what can be achieved? Well for one, if will give the authorities including the income tax department enough time to check on the background of the people who have done this conversion, as well as their source of funding and last but not the least an explanation on why they choose to ensure that money ends up in Revenue Group Bhd coffers.
WHY is this process of interviewing those who converted the warrants is of importance? It is for national interest, because if the source of funds are not clean it can destabilise the entire Malaysian stock exchange.
ALSO we have to accept the fact Revenue Group might not be equipped to handle this matter because the company currently does not have AN EXTERNAL AUDITOR nor does its have a CEO .
