THE rigging READ : is a false market red flag not only on Revenue Group but also on its auditor chengco.
I had pointed out as early as February this year, that READ : Bursa Malaysia should seek advise from PDRM's commercial crime department with the view of laying out criminal charges on Revenue Group Executive Director Teh Chee Hoe.
THE rationale was based on three factors, one my confidence that the Innov8tiv sale to Nexg Bhd, READ :the Innov8tiv sale will lead to loss for Revenue Group Bhd and not a profit.
TEH Chee Hoe was acting in bad faith with criminal intent to mislead minority shareholders READ : that Innov8tiv's prospects were great, when Revenue Group paid a premium to Hong Seng to acquire an asset which Hong Seng no longer wanted.
WHY criminal intent? Well because eventhough shareholders were not required to vote , in none of the documents submitted by Revenue to Bursa Malaysia with regards to the purchase of Innov8tif, there was no disclosure made that Teh Chee Hoe was heavily in debt with Hong Seng .
TO the extent, Teh Chee Hoe's Revenue Group Bhd shares were all registered under Hong Seng Capital.
NOTICE how when Revenue Group was purchasing Innov8tif from Hong Seng, how READ : REVENUE Group went out of its was way to ensure minority shareholders didn't get to vote on the deal by stating the following;THE highest percentage ratio for the Proposed Acquisition pursuant to Paragraph 10.02(g) of the Main Market Listing Requirements, is 22.92%, being the Purchase Consideration over thelatest audited consolidated net assetsof REVENUE as at 30 June 2022. As such, the Proposed Acquisition does not require the approval of shareholders of REVENUE.
ALSO notice as soon as I mentioned that Teh Chee Hoe should face criminal charges for the fraud, committed with malefide intent, look how Bursa Malaysia reacted in the disposal of Innov8tif by Revenue Group Bhd to Nexg Bhd, yet another transaction which did not require minority shareholders to vote on.
OUT of the blue, READ : Bursa states Revenue Group minorities must vote on Innov8tif disposal
MY comments when Bursa made a minority shareholder vote a must if Revenue wanted to hive off Innov8tif to Nexg Bhd was READ : BY having minorities vote, it seems someone is looking to use thevote as an endorsement in retrospect in favour of Teh Chee Hoe prior actions.BURSA Malaysia, if it had any dignity left, should file criminal charges on Teh Chee Hoe.
SO why is this a big deal now? Well for one Teh Chee Hoe's actions resulted in Hong Seng Consolidated Bhd, posting a new RM5.5 million gain.
AND Revenue Group's sudden sale of Innov8tif to Nexg Bhd has resulted in nearly double digit per centage wise loss.
A look into Revenue Group's accounts, the 3 year bleeding red ink company reported that it suffered READ : a loss RM1.29 million in disposing an associate company and a larger loss of RM3.475 in the disposal of a subsidiary company.
