EVENING 5: Ex-Silver Bird bosses acquitted

Summary

The video script covers several key updates in the business and financial world, including a legal victory for Silverberg Group executives who were acquitted of charges involving a multi-million-ringgit fraud, despite earlier financial struggles that led to bankruptcy. The script also highlights TNB’s financial performance amidst the pandemic, fugitive financier Low Taek Jho's controversial international ties, and a business deal involving Lee Foaming's stake in Mahabali Group. Additionally, it mentions a Malaysian company, Iconic Worldwide, entering the face mask manufacturing business to meet rising demand due to COVID-19, thus diversifying their operations amid economic challenges.

Takeaways

• 😀 The eight-year legal saga for Silverberg Group executives Dato Jackson Tan Hankook and Derek Ching Su Chun ends with their acquittal by the Court of Appeal, clearing them of 134 charges of cheating Maybank.
• 😀 The acquittal marks the end of the prosecution's appeal process, which began in 2012. The defendants were accused of using false documents to fraudulently obtain banking facilities for three companies.
• 😀 The Silverberg Group, later renamed Hi-5 Consolidated, faced a financial disaster when a hole of 112 million ringgit was discovered, which later turned out to be 297 million ringgit, leading the company to fall into financial distress and be delisted from Bursa Malaysia in 2014.
• 😀 Tenaga Nasional Berhad (TNB) reported a 54% drop in net profit for the first quarter of FY 2020, due to significant foreign exchange losses and a decrease in revenue caused by COVID-19 disruptions.
• 😀 Despite these challenges, TNB's CEO Amir Hamza Aziz remains optimistic about the company's resilience, citing a robust balance sheet and predicting a gradual recovery in economic activity by the second half of 2020.
• 😀 Malaysian financier Low Taek Jho, known as Jho Low, allegedly used connections with the Kuwaiti royal family to evade international law enforcement efforts, including a fugitive search by U.S. and Malaysian authorities.
• 😀 Jho Low reportedly offered Chinese investment connections to Kuwait in exchange for protection, using new business deals and financial channels to hide assets and evade prosecution.
• 😀 The fugitive financier has been convicted in absentia by Kuwait on charges of forgery, which he denies, claiming it was retaliatory action from Sheikh Sabah after disputes over using the media to move illicit funds.
• 😀 Cocco Land Holdings co-founder Lee Foaming is set to become a substantial shareholder in Mahabali Grupo, purchasing a 7% stake due to his belief in the company's growth potential.
• 😀 Iconic Worldwide, a Penang-based tourism and property development company, is diversifying into face mask manufacturing, targeting factory and construction companies in Malaysia amid rising demand due to the COVID-19 pandemic.

Q & A

What was the outcome of the Court of Appeal case involving Silverberg Group executives Jackson Tan Hankook and Derek Ching Su Chun?

The Court of Appeal acquitted Jackson Tan Hankook and Derek Ching Su Chun of all 134 charges related to cheating Maybank and using forged documents to obtain financial facilities. The court found no merit in the prosecution's appeal, and the acquittal was upheld.

What financial scandal surrounded Silverberg Group, and how did it affect the company?

In 2012, Silverberg Group (later renamed Hi-5 Consolidated) discovered a massive financial shortfall, initially reported as RM112 million but later revealed to be RM297 million. The company eventually faced delisting from Bursa Malaysia and entered a PN17 (Practice Note 17) status due to its financial troubles.

What were the financial results of Tenaga Nasional Berhad (TNB) for the first quarter of FY 2020?

TNB reported a 54% decline in net profit for Q1 FY 2020, falling to RM717.9 million. This decline was attributed to a significant RM402.8 million foreign exchange loss and a 12% drop in quarterly revenue, mainly due to a rebate of RM307.5 million from the imbalance cost pass-through.

What challenges does TNB foresee for the remainder of FY 2020?

TNB expects prolonged challenges due to the ongoing COVID-19 pandemic and global economic uncertainties. However, it remains optimistic that economic activity will gradually recover in the second half of 2020.

How did fugitive financier Jho Low allegedly manage to avoid capture by US and Malaysian authorities?

Jho Low reportedly sought assistance from Kuwait's royal family in early 2016 as US authorities closed in on him. He used these new connections to secure business deals and channels for moving money, enabling him to flee Malaysia despite Interpol's red notices.

What role did the Kuwaiti royal family allegedly play in Jho Low's escape?

Jho Low allegedly used his ties with the Kuwaiti royal family, specifically a son of the then Prime Minister Sheikh Sabah, to secure protection and facilitate illicit business deals, including the movement of funds related to the 1MDB scandal.

What is the nature of Mahabali Group's business, and how is Lee Foaming connected to it?

Mahabali Group (MBL) is a manufacturer specializing in palm oil and oilseed crushing machinery. Lee Foaming, co-founder of Cocco Land Holdings, is set to become a substantial shareholder in MBL with a 7% stake, having invested in the company due to its potential.

How did iconic worldwide respond to the COVID-19 pandemic in terms of business strategy?

Iconic Worldwide ventured into face mask manufacturing under its subsidiary Iconic Medicare. The company aimed to meet the rising demand for face masks locally, targeting factory and construction companies in Malaysia, and anticipated production growth to 5 million masks per month by the third quarter of 2020.

Why did Iconic Worldwide's face mask production plan seem like a timely business decision?

The decision to manufacture face masks came as most domestic supply was sourced from China, and the local production would ensure a reliable and quality supply. Iconic Worldwide anticipated continued demand for face masks due to the ongoing pandemic, which would also help balance losses in its property and hospitality sectors.

What is the significance of the charges against Jho Low and how have they affected his reputation?

Jho Low has been accused of masterminding the theft of billions from 1MDB, with charges including money laundering, fraud, and embezzlement. His flight from Malaysia and the alleged involvement of powerful figures like the Kuwaiti royal family have added complexity to his legal troubles and tarnished his reputation internationally.