THE biggest lesson we didn't learn from Enron is that corporation's will engage in conflict of Interest and will not stop until requlators start taking serious and honest action.
ANOTHER important lesson which we have FAILED to learn is small investors are placed LAST in a corporations food chain, meaning they are the last to get paid by corporations,, but if the shit hits the fan, small investors tend to suffer losses , which are often unrecoverable.
NOW that we have got READ :a Second Finance Minister, the Ministry of Finance, should seriously investigate the activities of the Corporate Mafia, who has been using the Enron play book over and over again.
THE Securities Commission and Bursa Malaysia, merely pretend everything is ABOVE BOARD, while the minority shareholders watchdog group are in a cocoon of their own.
THE powebrokers and decision makers at Securities Commission and Bursa Malaysia, should be investigated on why the ENRON TYPE RED FLAGS in so many of the Corporate Mafia's proposals were approved at the EXPENSE of retail shareholders.
BY solely using ENRON as the benchmark, I shall outline some of those dubious dealings, which definitely is pointing to something very wrong with the power Joe's at SC and Bursa Malaysia .
ENRON thought us, to keep an eye on insider trading activities, if not kept in check, it can collapse a company as well as the entire stock market. READ : Enron Corp.'s former Chief Executive Officer Jeffrey Skilling jailed 24 years for insider trading and fraud
REVENUE Group Bhd, one of the companies in the armory of the Corporate Mafia, had seen READ:Eddie Ng Chee Siong sells off his Revenue Group Bhd shares via off market just 24 hours before company announces RECORD losses.
THERE is a train of thought which suggest that READ : In the landmark case of Lew Chee Fai, Kevin v Monetary Authority of Singapore [2012] 2 SLR 913, the Singaporean Courts found that quarterly financial results are considered material information. Eddie may have committed a criminal offence of insider trading under section 188 of the Capital Markets and Services Act 2007 (Act 671).
ENRON had thought us that withholding information will most likely lead to Securities fraud. READ: Timothy Despain, the former assistant treasurer of Enron Corp., has pleaded guilty to a charge of conspiracy to commit securities fraud.
JUST look at Hong Seng Consolidated Bhd READ : axing RM3 billion Rubber Glove Project in Kedah On Sept 2023, and the Kedah Menteri Besar's reaction. READ : I was informed on Hong Seng's possible withdrawal, says Kedah Menteri Besar.
SO how come the small shareholders only got to know about it a year latter. Do note the announcement of the project in 2021, helped Hong Seng Consolidated shares breach RM3.40 , valuing the company at RM8 billion , but TODAY the shares trade at TWO SEN , valuing the company at RM102 million.
ENRON thought us that READ : a toxic culture that valued short-term gains and personal enrichment over ethical behaviour is a recipe for disaster.
TAKE for instance, Hong Seng Consolidated Bhd READ : buying a32.61% in Classita Holdings Bhd for RM60.31mil from Victor Chin Boon Long's wife on July 2023.
TODAY 100 per cent of Classita is worth only RM55 million, and this steep drop in value , all in less than SIX MONTHS.
WHICH brings us to the next question. Why did Hong Seng buy 32.61 per cent and not 33 per cent?
WELL, this is what ENRON had thought us, that READ : Enron used off balance sheet transactions to shield it from being exposed
BUYING 33 per cent , could have triggered a mandatory general offer, which Hong Seng may have wanted to avoid.
0R it could also be the case enough shareholders could have sold their shares in a MGO offer to turn Classita into a subsidiary, with out Hong Seng obtaining say 75 per cent of Classita. READ : A subsidiary company is where the parent owns 51 per cent stake and will have to consolidate the subsidiaries financial statements.
ENRON had also thought us, that rewarding insiders when they shouldn't is not only bad business but is akin to robbing small shareholders. READ; Enron paid out $681m to top executives just before going bust.
JUST look at the deal in which REVENUE Group Bhd under Francis Leong Seng Wui READ: paid a RM5.5 million premium for the six month old digital business that Hong Seng Consolidated did not want anymore.
AND let's not forget; the making of outlandish claims that never materialise. READ :Enron Broadband and its claim to be on track to be the world's most valuable Internet company.
WELL look no further than current SARAWAK CABLE Bhd's CEO's deal with Hong Seng Consolidated. READ : A 51 per cent stake in Russell Walter Boyd's Pow Pocket for RM200mil, will generate Hong Seng RM400 million in profits.
NEEDLESS to say the deal died off just like the broadband unit of ENRON.
