The controversy surrounding Maika Holdings Berhad seemed to have not only been legendary but also created a legacy that will go down in history as the mother of all scandals. However, we are now beginning to discover that the scandals may have gone on even after Maika was sold to G Team Resources.
In 2010, G Team Resources and Holdings (G Team) established by Tan Sri G Gnanalingam and Datuk S Kunasingam offered to acquire the 125 million shares in Maika at RM106 million. G Team claimed that the intention was to restore to Maika shareholders their original investment.
However, this sale came under scrutiny, even raised in Parliament as mention in my article THE MOTHER OF MALAYSIA’S FINANCIAL SCANDALS – https://www.srisanjeevan.com/the-mother-of-malaysias-financial-scandals/
Recently in an agreement spotted by us, we discovered that Pembinaan Redzai Sdn Bhd, whose board of directors include Gnanalingam and his son Ruben Emir Gnanlingam Abdullah, had given a RM140 mil “friendly” loan to G Team, charging 6% interest.
The Ministry of Housing and Local Government stipulates that a company must be granted a money lending license under the Moneylenders Act 1951 and Moneylenders (Control and Licensing) Regulations 2003 “to undertake any business of those relating to the money lending activities, which complements its existing business”.
Pembinaan Redzai is an investment management firm according to Bloomberg.
So what is Pembinaan Redzai where Gnanalingam is also board member, doing lending money to G Team which Sarawak Report mentions, was to buy up the majority of Maika shares in 2010 as part of the “bail out” plan?
Also, the document viewed by us clearly showed that the loan agreement was not endorsed with a stamp duty. Would the document then be regarded as legal and binding contract?
Sarawak Report claims that the interest collected interest from the RM140 million “friendly” loan to G Team was about RM16 million. This begs the question – was this declared in Pembinaan Redzai’s annual income to Inland Revenue Board (LHDN)? If the agreement was not even stamped in the first place, how then would the interest from the “friendly” loan be declared?
So, Pembinaan Redzai (which is also co-owned by Gnanalingam) made RM16 million ringgit profit from Maika Holdings in the name of interest for “friendly loan”? So Gnanalingam is really the “white knight” who came to rescue Maika Holdings and it’s 66,000 investors?
The plot thickens as Sarawak Reports states that according to the letter sent by the liquidator, when the majority of the insurance company Oriental Capital Assurance Berhad (OCA) was sold to Tune Insurance Holdings for just over RM145 million. However, that amount was transferred by cheque straight back to Pembinaan Redzai as an apparent repayment plus interest – rather than to Maika itself for proper distribution.
So in the first place is Pembinaan Redzai a licensed moneylender? If not, how was it possible for the company able to provide a “friendly” loan to G Team? Bear in mind that Gnanalingam was holding high positions in both companies at that time. Even if it is legal, would it make it right?
Maika’s scandals have been shrouded with secrecy for too long. Only now are all of it being uncovered. As I said before this is too big a scandal for the new government to ignore. The time has come for justice to finally prevail.
The billion dollar question is why MACC still hesitating to act or investigate Maika – G Team’s deal? Is there someone high up protecting or stopping such investigation from commencing which could land someone highly influential in jail?
“Fight Injustice Everywhere”
Dato’ Sri Sanjeevan Ramakrishnan