Call on KOOP KOSATU Chairman, Tee Ann Chuan, to explain whether it is true, and if so why, KOSATU accounts for 1978, 1979 and 1980 have not be audited and KOSATU AGM have not been help since 1979
I have received complaints and representation by members of KOOP KOSATU accounts have not been audited, as required by the Co-operative. Ordinance 1948 for the years 1978, 1979 and 1980, and that KOOP KOSATU had not help Societies its annual general meeting, as required by its by-laws, since 1979.
I have made preliminary investigations into the activities of KOOP KOSATU which clearly indicate that the Chairman of KOOP KOSATU Tee Ann Chuan is duty-bound to give its members and the public a full accounting of KOOP KOSATU activities. As the first step, Tee Ann Chuan should explain whether it is true, and if so why, KOOP KOSATU accounts for 1978, 1979 and 1980 have not been audited, and KOSATU AGM Annual General meetings have not been help since 1979.
KOOP KOSATU, of Koperasi Belia Bersatu Berhad, was registered on 17th January 1977 under the Co-operative Societies Ordinance 1948, registered number is Bill. Daftar: KOOP Peringkat Negara No.11, Bill KOOP IP: 5049/1.
The registered address is 76, Jalan Midah 1, Taman Midah, Cheras., Kuala Lumpur.
KOOP KOSATU has an estimated membership of 8,000 members, and with a $100 share per member, KOSATU would have an estimated paid-up capital of $800,000 from membership shares.
KOSATU has at present about 30 finance branches in West Malaysia, which could borrow money from member and non-members. I understand that at the end of May 1981, KOSATU derived some $13 million borrowings from its 30 finance branches.
Although the Co-operative societies Ordinance 1948, Section 31, and the KOOP KOSATU by-laws Section 22(c) allow KOOP KOSATU to borrow money from the non-member public, the maximum ceiling of borrowings is subject to approval by the Registrar-General of Co-operatives and under section 25 of the Registrar-General of co-operatives and under section 25 of the KOOP KOSATU by-laws, also subject to its Annual General Meeting of the KOOP.
As the KOOP KOSATU had not had an annual general meeting since 1979, there has clearly been an infringement of its by-laws here.
The third, source of funds of KOOP KOSATU are investment funds from the KOOP KOSATU members to participate in various investment schemes.
I have seen the various brochures which KOOP KOSATU had put printed to induce members to invest in these schemes.
They are the most unusual and extraordinary brochures to say the least.
I will just give one example. In a brochure put out by the KOOP KOSATU to induce investment in KOSATU PEMAJU PERUMAHAN SDN. BHD., dated 20th December 1979, KOSATU said it had entered into joint ventures agreement with several landowners in various parts of Malaysia to undertake the development of properties.
For this purpose, KOSATU claimed that it had formed KOSATU PEMAJU SDN.BHD. with a authorized capital of $5million to manage the properties, involving a total of approximately 1,220 houses of different types.
KOSATU said that only KOSASTU members would have the opportunity to participate in the KOSATU PEMAJU SDN.BHD., in share units of $1,000 each, with the aim of raising $3 million as working capital “to develop all the existing properties and to buy potential land for housing development”.
What is surprising is that KOSATU members who respond and want to subscribe to KOSATU PEMAJU SDN.BHD. cannot be direct shareholders, as their shares “will be registered under the name of KOSATU NOMINESS SDN BHD who will hold the shares in trust” for the subscribers!
I do not know how many millions of dollars were subscribed to KOSATU PEMAJU SDN. BHD. in response to this campaign by KOOP KOSATU, but a check with the Registry of Companies produces the following information:
1. As of 10th January 1980, a total of $100,000 shares at $1 each was allotted to KOSATU NOMINESS SDN.BHD., address being No.76 Jalan Midah Satu, taman Midah, Cheras.
2. The directions are Tee Ann Chuan of 76, Jalan Midah Satu, Taman Midah, Cheras, Yong Liang Yeow of 3130 Masjid Tanaly, Melaka and Lee Yong Suang, 128 Bertam Ulu, Melaka.
3. On 1st Sept. 1980, the Registry of Companies was notified that “at an extraordinary general meeting of the members of KOSATU Pemaju Permuhan SDN. BHD. duly convened and help at 76, Jalan Midah satu , Taman Midah, Cheras , Kuala Lumpur on the 29th August 1980, the special Resolution set out below was duly passed: That the anme of the Company be changed from KOSATU PEMAJU PERUMAHAN SDN. BHD to BERSATU PEMAJU PERUMAHAN SDN.BHD.”
I am not prepare at this moment to draw any conclusions yet, for I want to give Tee Ann Chuan an opportunity to explain himself, and also to let the public and KOSATU members know whether the KOSATU PEMAJU PERUMAHN SDN.BHD., or the BRESATU PEMAJU PERUMAHAN SDN.BHD. ,has a Developer’s Licence to enable it to build houses and collect booking fees from members.
In this connection, it is pertinent to note that according to the Registry of Company records, as of 18th June 1979, KOSATU NOMINEES SDN. BHD.’s shares are allotted as follows:
KOOP KOSATU 76 Jln Midah Satu, Taman Midah 3,197 shares
Cheras, Kuala Lumpur
Tee Ann Chuan 76 Jalan Midah 1, Taman Midah, 4,000 shares
Cheras, Kuala Lumpur
This means that Tee Ann Chuan holds 55% personal ownership and control of KOSATU MONIEES SDN. BHD. and 100% control through KOOP KOSATU. Surely there is a grave conflict of interest is involved.
It is also to be noted that other companies of KOOP KOSATU had changed their names like KOSATU PEMAJU PERUMANHAN SDN.BHD.
Thus, KOSATU AGRICULTURE SDN.BHD. has change its name to TRIANG AGRICULTURE SDN. BHD. on 5th Nov 1980. It is interesting to note that as of 21th June 199, the shares of KOSATU AGRICULTURE SDN.BHD.as allotted as follows:
Tee Ann Chuan 76 Jln. Midah Satu, Taman Midah 20,500 shares
Kosatu Nominees Sdn.Bhd.
76 Jln. Midah Satu, Taman 1,901,000 shares
KOOP KOSATU 76 Jln. Midah satu, Taman 800,000 shares
The net effect of the shares allotment of KOSATU AGICULTURE SDN.BHD., and now changed to TRIANG AGRICULTURE SDN.BHD. is Tee Ann Chuan’s personal control.
Again, another KOSATU company, the KOSATU KOKO SDN.BHD was changed to KEMAMAN KOKO SDN.BHD. on 15th Nov. 1980. The 700,002 shares of $1 each in KOSATU KOKO SDN.BHD., and now KEMAMAN KOKO SDN.BHD. are as follows; as of 27th January 1981:
KOSATU NOMINEES DN SDN.BHD. 700,000 shares
76 Jln. Midah Satu,
Taman Midah, Cheras,
LIH CHOON YEN 1 share
76, Jalan Midah satu,
Taman Midah, Cheras,
Tee Ann Chuan 1 share
76, Jalan Midah Satu,
Taman Midah, Cheras,
Mr. Tee Ann Chuan should explain why at the end of last year, there was such a rush to change the names of KOSATU companies, and whether all such changes were with the consent, knowledge and approval of the KOOP KOSATU executive board and the Registrar-General of Co-operatives.
At the end of last year, Tee Ann Chuan claimed that KOOP KOSATU had bought over the majority control of Kin Kwok shares, the public who wish to subscribe required to sign a form which has the effect to authorize KASOME NOMINEES SDN.BHD. of 76, Jalan Midah Satu, Taman Midah, Cheras to hold the shares in trust. Again,the subscribers will not be direct shareholders of Kin Kwok Daily News Sdn. Bhd.
A check with the Registry of Companies showed that there are only two subscribers shares of $1each in KASOME NOMINEES SDN.BHD., and the subscribers Tee Ann Chuan and Loh Choon Yen both of 76, Jalan Midah Satu, Taman Midah, Cheras, according to returns dated 10th June 1980. Tee Ann Chuan and Loh Choon Yen are also the directors.
I would let the above facts speak for themselves at the moment, subject to a public and satisfactory explanation from Tee Ann Chuan.
If there is no public and satisfactory explanation, I will then take the next step necessary in the public interest.