Kuala Lumpur, Malaysia (29 May 2023), Unfolding like a thriller, the controversy clouding YNH Property Bhd (KSLE:YNHPROP) grows darker as a series of dubious transactions and questionable financial practices emerge. A groundbreaking news story erupted three weeks ago, exposing the damning reality and shaking YNH to its core. This revelation cast a dark shadow over the company’s directors and triggered a string of dramatic events that has forever altered YNH’s course. Link below:
The detailed exposé unearthed incriminating evidence against the YNH Director, painting a shocking picture of flagrant misconduct and self-enrichment through illegitimate use of company assets. Disclosures suggest the Yu family, including Yu Kuan Huat and Yu Kuan Chon, two controlling shareholders and Directors, along with close relatives, pocketed an astounding RM 239.5 million of borrowed funds derived from proceeds of YNH’s issued bonds and debt facilities. This revelation sent shockwaves across the business landscape, casting doubts over the ethical compass of YNH’s leadership.
Public records from the Land Office reveal that the brothers, alongside other family members, repeatedly used the property as collateral for personal loans. Surprisingly, the loans were sanctioned by the property owner, who happens to be siblings of the Yu brothers.
In a hurried attempt to obscure these deceitful transactions, YNH announced its intention to sell its property to Sunway, a notable competitor, a mere three weeks post the explosive revelation. This rush to action appears to be a frantic bid to bury the scandal and avert escalating scrutiny, further underscoring the severity of the accusations.
The convoluted plot thickens with allegations suggesting that the Yu family benifited use of cash amounting to at least RM 239.5 million, were ingeniously masked by the company’s Board of Directors through phony Joint Venture deposits for imaginary, non-existent projects. Over the years, this concealed debt has incurred gigantic interest payments, ballooning to a staggering RM 50 million or more. Some estimates project the interest and expense costs to surpass RM 80 million. This colossal loss, quietly swept under the rug, demonstrates a horrifying disregard for financial transparency and stakeholder trust.
The YNH scandal is a stark illustration of the dangers of unchecked authority and murky dealings in corporate governance. As we delve deeper into this maze of deception, the critical question remains: How will YNH bounce back from this crippling blow, and what will the consequences be for those embroiled in this high-stakes financial debacle? What scheme will the Yu family come up with to avoid returning the RM 239.5 million?
The sharp-eyed Security Commission Malaysia Market Surveillance Department caught wind of the suspicious transactions, issuing a staggering 26 questions in response to a compliance filing regarding the announced sale. Many questions were met with silence from YNH, increasing the Department’s suspicion and prompting further inquiries.
Leaked information reports are now surfacing that suggest the property transaction was hastily put together in the week following the news expose, thus lacking the proper announcements, stamp duty, and appropriate documentation to show that the sale of the property to Kar Sin Bhd (subsidurary of YNH), ever existed prior to this month. These documents were allegedly backdated to the month following the end of the last accounting period. As expected, the prior historical claims by YNH Property going back years have no regulatory announcements or compliance documentation as required under the rules.
Stay tuned for further updates on this sensational saga of corporate malfeasance, as we remain committed to unraveling the truth amidst this sea of controversy.
