DAP rep: Johor MB misled state assembly
Published: Sep 1, 2014 11:46 AM | Updated: Sep 2, 2014 10:37 AM
The Johor menteri besar misled the Johor state assembly on a scheme under the Johor Corporation, DAP's Jementah assemblyperson Tan Chen Choon claimed today.
Menteri Besar Khaled Nordin told the state assembly in June this year that the corporation was waiting for an approval from the Securities Commission approval before offering those who invested in the Johor fund (Dana Johor) a "buy-back" scheme, Tan said in a statement.
The Johor menteri besar misled the Johor state assembly on a scheme under the Johor Corporation, DAP's Jementah assemblyperson Tan Chen Choon claimed today.
Menteri Besar Khaled Nordin told the state assembly in June this year that the corporation was waiting for an approval from the Securities Commission approval before offering those who invested in the Johor fund (Dana Johor) a "buy-back" scheme, Tan said in a statement.
However, Tan (standing on the left) said, he wrote to the Securities Commission and it replied that the state-owned corporation had never made such an application, and that its approval to design a new scheme was, in the first place, not required.
"I am of the opinion that the answer given by the menteri besar was inaccurate, and that he misled the state assembly," Tan said.
The scheme is for the corporation to buy back the Johor Fund from its 35,912 investors at a "special price" that is to be executed in four stages.
'Final stage put off three times'
The first three stages have been executed, until January 2013, but the fourth stage had been postponed three times as of now, Tan said.
In fact, the final date for investors to sell off their shares in the fund to the corporation under the special scheme had initially been set at June 30, but with the delay of the fourth stage, the deadline has elapsed.
Investors who sell past the deadline will have no option but to sell at a much lower market price.
To date, the shares of the fund brought back from investors in the first three stages are worth RM202.57 million.
Tan demanded that Khaled provides adequate explanation on the issue as and warned that failing to do so would bring a "negative impact" on the confidence of investors in Johor Corporation and in his role as Johor Corporation chairperson.
"The menteri besar must explain why the answer he gave to the state assembly differs from the answer given by the Securities Commission," he said.
Tan added that investors had personally complained to him that Johor Corporation had written to them, saying that the final stage of the buy-back scheme had been postponed indefinitely.
Malaysiakini has contacted the menteri besar and is awaiting his response over the matter.
Menteri Besar Khaled Nordin told the state assembly in June this year that the corporation was waiting for an approval from the Securities Commission approval before offering those who invested in the Johor fund (Dana Johor) a "buy-back" scheme, Tan said in a statement.
However, Tan (standing on the left) said, he wrote to the Securities Commission and it replied that the state-owned corporation had never made such an application, and that its approval to design a new scheme was, in the first place, not required."I am of the opinion that the answer given by the menteri besar was inaccurate, and that he misled the state assembly," Tan said.
The scheme is for the corporation to buy back the Johor Fund from its 35,912 investors at a "special price" that is to be executed in four stages.
'Final stage put off three times'
The first three stages have been executed, until January 2013, but the fourth stage had been postponed three times as of now, Tan said.
In fact, the final date for investors to sell off their shares in the fund to the corporation under the special scheme had initially been set at June 30, but with the delay of the fourth stage, the deadline has elapsed.
Investors who sell past the deadline will have no option but to sell at a much lower market price.
To date, the shares of the fund brought back from investors in the first three stages are worth RM202.57 million.
Tan demanded that Khaled provides adequate explanation on the issue as and warned that failing to do so would bring a "negative impact" on the confidence of investors in Johor Corporation and in his role as Johor Corporation chairperson.
"The menteri besar must explain why the answer he gave to the state assembly differs from the answer given by the Securities Commission," he said.
Tan added that investors had personally complained to him that Johor Corporation had written to them, saying that the final stage of the buy-back scheme had been postponed indefinitely.
Malaysiakini has contacted the menteri besar and is awaiting his response over the matter.
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