I wish today to ask the EPF Investment Panel and the EPF Board to explain the following ten share transactions, 70 per cent of which were all re-sold to the $2 company, MAKUWASA, causing EPF depositions to suffer losses by the profits foregone:
Company Date Units Purchase Date Sale Market Loss suffered
Bought Price sold to Price Price by EPF if
Makuwasa sold at market
price
1 Keck Seng(M) Bhd 10.7.84 1 mil. $2 2.8.84 $2 $3.40 $980,000
2 Kumpulan Emas 9.8.84 1 mil. $0.70 15.10.84 $0.70 $1.86 $812,000
3 Sitt Tatt Bhd. 11.9.84 500,000 $1 15.9.84 $1 $2.00 $350,000
4 Muda Holdings 27.9.84 800,000 $0.50 15.10.84 $0.50 $1.00 4,280,000
5 Kian Joo Can Factory Bhd. 10.10.84 325,000 $0.60 10.10.84 $0.60 $1.11 $222,870
6 Dayapi Industrie Industries (M) 24.10.84 600,000 $1 24.10.84 $1.00 $1.69 $289,800
7 Filecon Engineering Bhd. 25.11.84 924,000 $1.20 26.11.84 $1.20 $2.66 $786,940
8 Metroplex 20.12.84 2 mil. $0.70 20.12.84 $0.70 $1.00 $420,000
9 Granite Ind. 29.1.85 500,000 $0.50 29.1.85 $40.50 $1.45 $665,000
10 Lam Soon Huat Development 6.3.85 506,000 $1.10 6.3.85 $1.10 $2.10 $334,000
11 Sri Hatamas 22.6.84 2 mil. $1.00 2.8.84 $1.00 $2.30 $1,820,000
12 British American Insurance 28.7.84 1 mil. $0.80 2.8.84 $0.80 $3.14 $1,638,000
13 Hong Kong Tin Corporation 12.2.85 1 mil. $0.50 12.2.85 $0.50 $2.36 $1,302,000
$9,920,610
In the table above, I have included the three shares I mentioned yesterday in the last three items. Every share was sold 70 per cent to MAKUWASA at the same purchase price, with EPF keeping 30 per cent of the original acquisitions. What is the rationale and justification for this mysterious EPF investment operation?
Has MPH Board ratified the $20 million transactions involving purchase of Koon Swan-Linked companies Supreme and Growth Industrial?
Tan Koon Swan’s outstanding sums with Multi-Purpose amounted to $43 million- comprising the $23 million which went to Singapore in November 1985 to help rescue Pan El, and three items totaling $ 20 million around May 1985 used for acquiring, among other things, shares linked to Tan Koon Swan, such as Supreme and the now-liquidated Growth Industries.
There is talk that the MPH Board, at its meeting on Monday, had ratified this $20 million item. The MPH Board owes the shareholders and the public a clear explanation.
On the $23 million (os S$ 20 million) transaction, the people are being given two versions by the same person involved, namely Tan Koon Swan. In November 1985, during the Pan El rescue bid, Tan Koon Swan want the people to believe that he had offered a S$ 40 million interest-free loan (of which the $23 million came from Multi-purpose) to save Pan El.
Now, Tan Koon Swan is saying that the $23 million from Multi-Purpose was meant in a transaction involving Pan El to save Multi-Purpose, by making Pan El take the Multi-Purpose’s Promptship- the shipping line which is expected to chalk up losses of $150 million- in exchange for Pan El’s solve viable asset- Orchard Hotel.
So now, Was Tan Koon Swan trying to save Pan El, or Multi-Purpose, or himself? He cannot be trying to save everyone.
If he was trying to save Multi-Purpose by passing the liability of the shipping company to E Pan El, the Pan El shareholders were being taken for a ride. If Tan Koon Swan made use of the money to save Pan El, then the MPH shareholders were being taken for a ride.
Tan Koon Swan must decide on one version of his actions to the people of Malaysia and Singapore for his Pan El and Multi-Purpose actions.