Mr HOE's sin is his non disclosure that he was severely at the mercy of Hong Seng Consolidated Bhd, when Revenue Group Bhd READ : acquired Hong Seng Consolidated's Digital Business at an inflated price.
SO does this become a related party exercise? Well you see, VIEW : between 23 million to 26 million shares to Hong Seng Capital Sdn Bhd at 36 Sen a share.
SO basically, Teh Chee Hoe, was in debt with Hong Seng Consolidated Bhd, when the decision was made for Revenue Group to spend more than RM30 million to acquire assets from Hong Seng Consolidated, which Hong Seng it self stated it did not want.
SO, how is all this Nga Kor Ming's problem? Well you see, the Hong Seng Consolidated subsidiary which lend the money to Teh Chee Hoe is part of a money lending family known as KREDIT KOMUNITI which is parked under the housing ministry.
THE role of the KREDIT KOMUNITI companies is actually give out small loans to the mainly B40 and M40 community, who may not necessarily have the required paperwork in a short notice to qualify for a bank loan.
THEY were never intended to give margin financing for people to gain control of public listed companies.
NOW if the matter had only stopped at The Chee Hoe, then Nga Kor Ming's need to poke his nose into the matter would not arise.
UNFORTUNATELY, the matter does not stop or even begin here. Take for example, Revenue Group's own money lending business which falls under the KREDIT KOMUNITI family, that was given an extension to it's expired license by Nga Kor Ming, has ended up doing the same thing ; helping finance people to acquire stakes in public listed companies.
MEET the not so meticulously competent SIN Chin Chai, the recipient of close to nearly RM2 million or a just lightly below quarter of of the RM8.5 million, Revenue Group sociliated from the public. VIEW : Revenue Group's KREDIT KOMUNITI share financing loan to Mr SIN
SIN also has a huge financial burden listed with Velocity Capital, to help margin finance his stake in INGENIEUR.
WHAT makes all this looking a whole lot worse and potentially criminal is Revenue Group has a minority stake in INGENIEUR Bhd.
NOW the question, we should be asking Nga Kor Ming to be asking is were all these loans given out using shares as collateral, hence in a worst case scenario ; making the collateral in actual fact WORTHLESS
