One of the list of companies undeclared by Tun Daim Zainuddin is FNQ Advanced Material Sdn Bhd. Upon googling, it is found that the company once owned 21.6 million shares or equivalent to 7.29% in Protasco Berhad in 2012.
It rings a bell because back in 2014, mother blog ABITW was in hot pursuit of a shareholders squabble of the public-listed beneficiary of government privatisation of JKR's road maintainance (seek for link here via VPN).
One member of the Board of Directors then claimed that he was there to sort the financial mess it is in at request of Daim who has sold his interest. By now, doubt there is still money from the shares sale. If it had not been sold, company have gone to the dump as shareholders alleged the controlling shareholders siphoned money out of the company.
It highlights that there is more to the story than just a list of undeclared assets of Tun Daim. MACC should dig deeper and thoroughly research each of these assets for a full picture of the transactions and real assets Daim owned. If found guilty, he could be required to fines or imprisoned.
Given his health condition, he will likely get away scot free to pay peanuts of a fine for the billionaire. The government attempt to recoup the assets allegedly acquired through ill-gotten gains from corruption or abuse of power turned out futile.
The 71 assets not declared by Daim that is being charged under Section 36(2) of MACC Act are below:
Loss-making Avillion
According to the Edge Online here, 23 out of the 38 companies are part of the loss-making Avillion Berhad.
The loss-making group’s largest shareholder is Daim’s son Datuk Md Wira Dani Abdul Daim, with a 21.82% stake via Ibu Kota Developments Sdn Bhd and Daza Holdings Sdn Bhd.
Wira Dani has been the group’s substantial shareholder since April 2016 — when the group was known as Reliance Pacific Berhad. Dani and his mother Toh Puan Mahani Idris emerged as substantial shareholders in the group at the same time, but Mahani exited in 2020 after she transferred all her 247.3 million shares or 26.3% equity to a Maybank Trustees Bhd account.
Avillion is involved in property, hotel and travel businesses. It is well known in the tourism sector, as it owns the Avillion Hotel Group, which operates a chain of luxury hotels and resorts in Port Dickson, Melaka, Kuang, Janda Baik and Kuala Lumpur, as well as Bali.
The company has been suffering losses between FY2016 and FY2023. In its FY2023 ended March 31, the group recorded RM4.76 million in net loss. For the six-month period ended Sept 30, 2023, Avillion’s net loss widened to RM3 million, from a net loss of RM2.37 million in the same period a year before.
The bigger net loss was due to increases in operating expenses, which rose 35.82% to RM32.3 million from RM23.79 million a year before, higher finance costs of RM3.17 million compared with RM2.94 million a year prior, and higher depreciation and amortisation of RM5.1 million.
As at end September 2023, the group’s total borrowings stood at RM87.31 million, a slight increase from RM86.87 million in the corresponding period in 2022. Of its total borrowings of RM87.31 million in the six months to Sept 30, 2023, RM34.04 million represented short term borrowings.
It should be noted that its external auditor Messrs Baker Tilly Monteiro Heng PLT raised concerns about the group’s ability to continue operating as a going concern in its audited financial statements for the financial year ended March 31, 2023 (FY2023).
Its bourse filing in end-July 2023 reported its auditor as saying Avillion incurred net losses of RM5.4 million at the group level and RM4.84 million at the company level in FY2023, although the group’s hospitality, property and travel divisions have recovered after the Covid-19 pandemic.
“[This] thereby indicates the existence of a material uncertainty which may cast significant doubt about the group’s and the company’s ability to continue as a going concern,” it said.
According to Avillion’s 2023 annual report, the group has properties with a combined value of RM285.92 million in terms of net book value (NBV). Among notable properties include Avillion Hotel Port Dickson, which has an NBV of RM137.77 million.
Avillion has seven plots of lands in Port Dickson with an NBV of RM100.07 million. Six of these lands are listed for development, while the remaining one is where the Admiral Cove Premier Integrated Marina Resort sits.
On its prospects, Avillion said the overall growth outlook for the group is encouraging as the near term outlook of the leisure and hospitality industry remains positive in the longer term, its bourse filing on Nov 2023 showed.
“We will continue to source for new income streams to ensure long term sustainability of the group. We are confident there will be greater visibility in the near future barring any unforeseen circumstances,” it added.
Avillion’s share price has been lacklustre. Its stock performance has been declining since hitting its peak of 78.5 sen in 2011, and sagged to its lowest point of three sen on March 19, 2020 — a day after the movement control order was enforced due to the Covid-19 pandemic outbreak.
On Monday, Avillion shares closed up 0.5 sen or 9.09% to six sen, giving the group a market capitalisation of RM68 million.
The company used to be under the control of Dato Irene Tan and her husband Dato Gan Eng Kwong. Wira Dani acquired an indirect interest of 12.29% via Ibu Kota Development Sdn Bhd in 2016. Presumably, Daim controls the no. 24 in the list of privately owned undeclared company.
In 2020, it was reported that one China group are interested in the company for RM382 million. Subsequently there were issues raised on the late notification in the transfer of the shares belonging to Mahani and the claimed China offer was viewed as too steep. In July lst year, auditors raised doubt over the ability of Avillion as an on-going concern.
It does not seemed to be assets of value for government to seize. Is this really a worthy catch by MACC?
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