MBI investigation could lead to Guan Eng's slush fund for DAP

Lim Guan Eng, his family and faction did poorly at the DAP's central committee election. He survived at 26th spot, lost the Chairmanship and given face saving position as Adviser. His people have not given up and perhaps pondering a return. 

Guan Eng's Penang tunnel case is still on-going in court for any immediate change in fortune. In the meanwhile, the changing of the guard at DAP went through smoothly and new generation of leaders sprouting. Bukit Aman was reported moving in to investigate the money trail of Tedy Teow and talk is  Guan Eng had dealings with Tedy.

Tedy is the founder of the infamous money game operator MBI Group. They operated a multi-level marketing (MLM) MCoin and Ponzi investment scam to swindle investors in Malaysia, China, Thailand, and Indonesia in the billions of Ringgit. 

He was arrested in Thailand in 2022 after years on the run. Malaysia requested for his extradition to face charges of fraud and money laundering, but he ended up being extradited to China in August 2024. 

Suddenly Bukit Aman called up corporate figures linked to the MBI money trail. One is believed to be linked to Ivory Property Berhad, one of the four property development company closely linked to Guan Eng. 

The Edge report below:

Bukit Aman calls up corporate figures to assist in investigations on MBI's money trail — sources

By M Shanmugam / theedgemalaysia.com

26 Mar 2025, 08:00 am

The now-defunct pyramid scheme MBI was the anchor tenant of Penang Times Square, which is now vacant. (Photo by Sam Fong/The Edge)

KUALA LUMPUR (March 26): Police are believed to have called up several corporate figures in Kuala Lumpur and Penang in their investigations related to the money trail of the now-defunct pyramid scheme MBI.

Sources said that at least two corporate lawyers in Penang have been questioned, and documents related to property and share transactions dealing with MBI have been seized from their offices and homes.

“Among the files taken from the homes and offices are transactions involving the Bayan Mutiara development on Penang Island where a company with shareholders linked to MBI emerged as the major shareholders in 2018. The land is one of the most prized assets in Penang with a development potential of close to RM10 billion,” said a source.

According to sources, the operations were conducted by the Anti-Money Laundering Division from Bukit Aman that carried out simultaneous investigations in Kuala Lumpur and Penang. The operations started last week. Police officers visited the offices and homes as well as seized documents from the premises over the weekend.

This is the first major police operation on MBI and its money trail, following months of investigations on the money trail. Sources said the operations were carried out directly from Bukit Aman and caught many in the state by surprise.

The Bayan Mutiara project is a 102.6-acre mixed development project that was tendered out by Penang Development Corporation in 2011 for RM1.07 billion. Out of the 102.6 acres, 35 acres is to be reclaimed off the sea near the Penang Bridge.

Ivory Properties Group Bhd (KL:IVORY), a company linked to MBI, won the tender. Ivory Properties is the developer of Penang Times Square, which MBI was the anchor tenant of. The retail mall is now vacant.

MBI is also a major purchaser of other retail spaces and condominiums within the Penang Times Square development that has now stalled.

A few months after winning the tender in 2011, Ivory Properties partnered with Tropicana Corp Bhd (KL:TROP) for the Bayan Mutiara project. The mixed development was positioned as the biggest property development on the island and was called Penang World City. It was slated to be completed by 2020.

However, in 2018, both Ivory Properties and Tropicana Corp exited the Bayan Mutiara project due to financial constraints. They sold their stakes to Hemat Tuah Sdn Bhd, a company in which a brother of MBI founder Tedy Teow Wooi Huat is the major shareholder.

The Edge reported that Teow Wooi Pin, a brother of Tedy, held 45% in Hemat Tuah. Another individual, Tan Kim Hee, holding 15%, is said to be the brother-in-law of Tedy.

“The transactions between Ivory-Trop and Hemat Tuah were handled by the lawyers whom the police have also called up to assist in their investigation to uncover the money trail. The police have also taken files related to share transactions of private companies related to MBI that were handled by the lawyers,” said a source.

One of the lawyers held an advisory position in a leading business organisation in Penang while the other lawyer was a board member of companies linked to MBI.

Apart from the two lawyers, police have also called in for questioning two others involved in the development of the Bayan Mutiara project. One of them was a former director in Hemat Tuah and an influential figure in the property scene in Penang.

In Kuala Lumpur, it is learnt that police have also called in a major shareholder of several listed companies to assist in their investigations on the MBI money trail. The corporate figure is from Kedah and is said to have been used to have dealings with the key personalities of MBI.

“Police are trying to determine whether there was any MBI money in the listed companies,” said a source.

MBI, which was founded by Tedy, was a pyramid scheme that was based in Penang. Its core product was the trading of digital coins, called M-Coins, that was not sanctioned by Bank Negara Malaysia. Thousands of depositors stretching up to China were conned into placing deposits with the scheme.

At one stage, MBI was said to have collected several billions. But when the scheme collapsed in 2018 after a raid by Bank Negara, depositors were left in a lurch without any avenue to recover the money. The money frozen from the MBI Group International's account was only RM177 million.

While Malaysian depositors of the scheme were largely inactive over the loss due to the collapse of MBI, depositors from China staged protests in Kuala Lumpur and filed legal suits here to recover their money.  

Tedy himself fled to Danok, Thailand, in 2019. He was arrested by the Thai police in 2022 and extradited to China in August 2024.

Read also:

Cover Story: Picking up the pieces from MBI’s collapse

Cover Story: 400 Chinese investors demand RM170 mil in class action against MBI

MBI thwarts Ivory Properties’ plan to revive Penang Times Square project

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Since Tedy is in China's custody, the sudden call-up by Bukit Aman of the corporate lawyers could only indicate that China may have fed police with leads to pursue the case. 

Chinese contractors were awarded tunnel and three road contracts for the Penang underground tunnel project. During the days leading to eventual investigation and prosecution of Guan Eng, the Chinese contractors pulled out from the project. 

In his first week as Penang Chief Minister, Guan Eng passed a snide remark at China's unofficial entourage. They took it in stride but sources claimed the Chinese bore a grudge when they were allegedly double crossed.  

The Chinese had went deep in their follow-up investigation of the Penang underground tunnel. It is believed that it led to the controversial feasibility study payment and three roads projects paid to come out in the open. 

In one of Guan Eng's official visit to China as Minister of Finance, he was given a run around and unable to meet any Chinese official of significance. He ended holed up in a Shanghai hotel room throughout the visit. Annuar Musa claimed he was denied entry. 

It is no more a secret that the Penang underground tunnel and the four property development companies dominating the Penang development scene were Guan Eng's effort to create a political slush fund for DAP. If this blog knows, China would have known Guan Eng had dealings with MBI.  

With police have to follow up on the lead from China, will Ivory Property ended up singing on Guan Eng and DAP?

It has been the talk in Penang that all the four property development companies aligned to Guan Eng faced some sort of business problems or legal lawsuits. One of the company known to be a hardcore Guan Eng supporter had an implosion of a family squabble that ended up with a divorce. 

Another was Ewein Berhad, in which founder and executive Chairman was supposed to appear as the 15th prosection witness against Guan Eng but the key witness was found dead.   

MBI is also known to have links to Widad Berhad, the company PAS's Kedah Menteri Besar proudly announced to build the multi-billion project Langkasuka in Langkawi with investment from UAE. At the same time, Widad is linked to a Kedah UMNO leader. 

Another company linked to MBI is a development company with project in Kulim, ECK Development. It means MBI could be involved in Sanusi's favourite project, Kulim Airport.  

Something to look forward to in the months ahead.