Sunday 22 October 2023

WiseGuy inside The Corporate Mafia ; One Swallow Doesn't Make A Summer

NOW that the owners of MyAirline have been arrested and , READ : some 15 bank accounts, holding nearly RM5 million linked to the founders of the carrier, frozen on money laundering suspicion, it is time to reflect on what have we actually achieved? 

WE have achieved very little if the investigation specifically with regards to money laundering or the cleansing of dirty money into clean currency ends only with the unfortunate owners of MyAirline and their political backers.

A Kadir Jasin, has struck the correct nerve on this occasion in his Sinar Harian Column, with the simplest of question. READ : Bagaimanakah pihak pihak terlibat yang memberi kelulusan kepada MyAirline tidak tahu atau tidak peduli langsung mengenai summer modalnya?

MYAIRLINE, reportedly READ : holds up to RM22 million from un fulfilled flights, which it has yet to return to those who had purchased those tickets, has grabbed the nation's attention, but sad to say, one swallow doesn't make a summer.


THE one swallow doesn't make a summer tag, holds true here, as long as those who authorised to enforce the financial regulations on money laundering  aren't put to the stress test as well.

WHY, should the individual regulators and not the regulatory institution itself, be put to the stress test, one may ask?

WELL because the laws are adequate, but yet potential money laundering schemes, have taken place this year in plain public sight, without even an official whisper from the market regulators such as The Securities Commission,  Bursa Malaysia and Bank Negara Malaysia.

TAKE for instance, between VIEW : March 21 2023 and VIEW : April 18 2023 some 15 million warrants were converted at a 40 sen per warrant conversion to Green Packet Bhd mother shares, one a one to one basis.

IN total, RM6 million was used to convert the Green Packet Bhd Warrants into Green Packet Bhd Mother Shares. To sum it up, for RM6 million, the warrant converter managed to own 15 million Green Packet Bhd mother shares.

HERE is where, the story gets a bit weird, as the regulators has yet to enlighten the public on why would a person or a group of individuals not use the same RM6 million to buy the Green Packet Bhd shares which were trading at 0.05 sen from the open market.

THE RM6 million, if used to purchase Green Packet Bhd shares from the open market, would have netted the buyer some 120 MILLION GREEN PACKET BHD MOTHER SHARES.

WHY would anyone choose to only own 15 million Green Packet Shares by spending RM6 million when they could own 120 million GREEN PACKET SHARES, is BEYOND ME.

IF this was a one off case, we could grudgingly write it off as an oddity, but it is not, which is why a much deeper probe no longer is a necessity but a MUST.

CONSIDER the following, Francis Leong Seng Wui was the executive director at Green Packet Bhd, but he would soon move over to Revenue Group Bhd, also as EXECUTIVE DIRECTOR. 


AND guess WHAT ? A similar pattern emerges in Revenue Group Bhd too, involving the one for one conversion of warrants into mother shares at a conversion price of 75 sen per warrant to mother share, at a time when the mother share was trading at an average of 25 sen a share.

IN total, some RM62.59 million in cash went into Revenue Group due to the warrant conversion that made no economic sence.

ONE would assume that with the RM62.59 million direct cash injection into Revenue Group Bhd, the company must surely be cash rich by now.