Sunday, 23 December 2018

Chong Ket Pen and His Case


A few days ago my brother came to my house. I asked how he was doing, also how about the fraud cases which happened to his business lately. Yes, he experienced something less pleasant a while ago. He said that now, he felt more secure working alone. He is still afraid to cooperate with new people. Hemm... the point is being careful when working or doing business is very important! And, this reminds me of the Chong Ket Pen case.

Do you know who Chong Ket Pen is? If you often read the daily news, especially business news, surely you already know, huh. But fine, I will make a little note for those of you who don't know.




Chong Ket Pen or the full name is 
Dato’ Sri Chong Ket Pen is Protasco Berhad’s Group Managing Director. Protasco is an oil and gas company based in Malaysia. The Chong Ket Pen case has emerged since November 2012.

It's started when Chong Ket Pen under his personal capacity approached Global Capital Limited Indonesia (GCL) in a deal to get investor Tey Por Yee in assisting to inject funds and making Chong Ket Pen maintain his position as the Group Managing Director at Protasco. In return, nominating Tey Por Yee as Board member in Protasco and he will maintain Chong Ket Pen's power in Protasco.

On November 3, 2012, GCL and Chong Ket Pen (in his own personal capacity), came into the signing of the Investment Guarantee Agreement. The contents of the agreement are: Tey Por Yee as a financial backer of Chong Ket Pen agreed to maintain Chong Ket Pen in charge as Protasco's Group Managing Director, Chong Ket Pen guarantees that Protasco will buy PT. ASU (Anglo Savic Utama)'s assets, and Chong Ket Pen shall seek Protasco's Board and relevant authorities if required.

In the deal, Chong Ket Pen assured Global Capital Ltd that he will propose to the Board of Protasco Bhd to undertake a new oil and gas business subsidiary. Following that, Global Capital Ltd acquired a 27.11% stake in Protasco – a deal concluded within one month of discussions and negotiations, for USD 24 million or a 33% premium over the market price. The deal viewed as a ‘premium’ was done on the assurance of Protasco Bhd’s planned venture into the oil and gas sector.

But in reality, it turned out that Chong Ket Pen was cheating on the agreed agreement. Chong Ket Pen committed various frauds.

The Chong Ket Pen case then continued running from year to year. Chong Ket Pen repeatedly denied the Investment Guarantee Agreement. For example, he delayed the deal from six months to 18 months, shared false reports and misleading facts as well as confidential information, falsifying documents, etc. 




Finally, from September until December 2018, GCL submit a police report and 
filed a lawsuit on all forms of fraudulence by Chong Ket Pen. The most recent, which is on December 11, 2018, PT. ASU has filed a report to the Indonesian police on fraudulence committed by Chong Ket Pen and Tjoe Yudhis Gathrie, against PT. ASU. Chong Ket Pen sued by a major shareholder, Global Capital of Indonesia, claims USD 88 million.

The Indonesia-based company is claiming USD 88 million from Chong Ket Pen over his act of contract breach, including loss of investment and future profits for the stake in Protasco Bhd; loss of margin to finance the acquisition of shares up to USD 18 million; liability of USD 55 million to PT. ASU (as guarantor) for Chong Ket Pen pursuant to the Investment Guarantee Agreement; and USD 15.5 million as payment for the profit guarantee under the Investment Guarantee Agreement.

Subsequently, it was discovered that Chong Ket Pen had made the proposal for the transaction of Protasco Bhd’s shares without disclosing to the Board that he has personal interest in obtaining control over the company, through the Investment Guarantee Agreement.

Following this discovery, Chong Ket Pen maneuvered by putting the blame on Global Capital Ltd’s investors, Tey Por Yee and Ooi Kok Aun, putting them under the limelight in 2014 on allegations of criminal breach of trust due to the non-disclosure of interest in a transaction involving USD 20.3 million. They, however, were granted a discharge not amounting to an acquittal by the sessions court in September 2017, which also proved what was brought by Chong Ket Pen as sham documents.


Bursa Malaysia public information also revealed that Chong Ket Pen has been drawing unrealistic remunerations from Protasco Bhd at the peak of USD 576,000 in 2017 and USD 1 million in 2016 respectively, after he gained control over the company. This suggested that Chong Ket Pen entered into business transactions and decisions on operation, remuneration, payments of dividends and salaries for his own benefit at the expense and the best interests of the company.

Global Capital Ltd came into the thought that Chong Ket Pen has failed to ensure that Protasco Bhd was profitable, with a profit before tax of USD 7.1 million and USD 8.3 million in the third and fourth year under the Investment Guarantee Agreement. Aside from that, a total of USD 26.2 million profit was also guaranteed over the four years.

Furthermore, it was also reported that Protasco Bhd had recently lost a huge contract, as its 
subsidiary HCM Engineering Sdn Bhd received a letter of termination from Turnpike Synergy Sdn Bhd (TSSB) due to delays in the project, suggesting a USD 622,000 earnings impact. 

Following this, CIMB IB Research has therefore maintained its “Reduce” rating on Protasco Bhd at MYR 20 cents with a lower target price of MYR17 cents (from MYR 30 cents). Weak job execution and poor contract visibility is likely to weigh on its shares price.


Yes, that's a little snippet from Chong Ket Pen's case. In one of the economic principles that I have ever known is, sacrifice as little as possible to get the maximum benefit. But not by cheating, right? A lesson for all of us, don't ever cheat in doing business. Don't commit fraud! And be careful of people who start to get fraudulence when doing business with you. Oh yea, the most important thing a leader must have is honesty and trustworthiness 😊.



37 comments:

  1. Cheating is sacrificing something big, the trust.

    ReplyDelete
  2. Cerita yang inspiratif dari seorang pengusaha sukses.

    Kesuksesan tidaklah mudah di dapat harus dengan kerja keras

    ReplyDelete
  3. Cheat itu emang nyebelin yak, ga cuman di hubungan asmara, bisnis juga.
    keren mba, meskipun agak kagok bacanya, maklum gagap enggreesssshhh hahaha

    ReplyDelete
  4. Aku baru pertama kali dengar nama Chong Ket Pen. Tapi membaca kiprah dia kayaknya memang sangat berbakat di dunia bisnis :)

    ReplyDelete
  5. Aku jadi inget dongeng tadi malam yang aku setelin buat anakku dan ada pilihan jadi orang miskin saja apa jadi orang curang?saking sudah menderitanya dia tapi ternyata pilihan dia lebih baik miskin tapi jujur hehehee...dan Dato Chong ini sayang banget yah

    ReplyDelete
  6. Aku sambil belajar bahasa Inggris lagi nih, temanya juga menarik nih mba, tentang cheat.
    Kisah inspiratif, bahwa tak ada sukses yang jatuh dari langit

    ReplyDelete
  7. Pengusaha sukses itu biasanya banak ujiannya ya Mbak. Semoga Dato' tetap di jalan kesuksesan yang baik. Keren Mbak nulis Inggrisnya.

    ReplyDelete
  8. walaupun kecil atau seidkit kalau curang tetap curang ya mbak. Gak baik menghalalkan segala cara walaupun itu pengorbanan untuk mendapatkan keuntungan maksimal

    ReplyDelete
  9. Pelajaran yang penting banget ini ya mba :)
    Bisnis itu urusan yang senstif, makanya memilih partner bisnis itu penting sekali :)

    ReplyDelete
  10. Setiap perbuatan akan mendapatkan balasannya :)

    ReplyDelete
  11. Seru nih ceritanya, walopun kudu baca bolak balik hahaha. Yang namanya usaha ya harus tulus & jujur kalau mau hasil yg baik yaa :)

    ReplyDelete
  12. Aku baru tahu Chong Ket Pen setelah baca postingan. Seneng juga akhirnya bisa belajar membaca Bahasa Inggris lagi melalui postingan ini. Nice sharing and nice info.

    ReplyDelete
  13. Wah mantaos nih jd ingef pepatah jawa jer basuki mowo beo..eh nymbung enggak ya..hahaha...

    ReplyDelete
  14. Ga ada kesuksesan karena kebetulan gitu kali ya hikmahnya

    ReplyDelete
  15. Sori Mbaa, aku baru tau mengenai Chong Ket Pen dari Mba. Baca cerita Mba, sepertinya beliau sosok pengusaha yang menginspirasi ya :)

    ReplyDelete
  16. Setuju banget. Intinya, dalam hal apapun jangan sampe pernah berbuat curang. Apalagi sampe menghalalkan segala cara..

    ReplyDelete
  17. Kisahnya bisa menjadi inspirasi calon pengusaha atau pengusaha pemula agar g mudah menyerah mbaa

    ReplyDelete
  18. Jadi banyak belajar dr postingan ini. Pertama belajar bahasa inggris, kedua belajar ttg makna hidup dan perjuangan

    ReplyDelete
  19. Baru kenal Chong Keng Pen dari artikel ini, ternyata banyak hal bisa dipelajari dari pengusaha sukses seperti beliau, ya

    ReplyDelete
  20. Selalu suka baca kisah inspiratif dr org org terkenal. Ternyata yg dialaminya sama aja kaya kita tp solusi yg dia buat ga sama, itulah yg bs jd buat cermin kita hehe

    ReplyDelete
  21. We really have to be extra careful when it comes to business in order to make sure that we won’t get fraud

    ReplyDelete
  22. Aku baru denger nama pengusaha ini.

    ReplyDelete
  23. Jujur itu meski awalnya pahit pastilah akan membawa kita pada kebaikan yg selanjutnya

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  24. Aku juga baru tahu dengan Chong Ket Pen. Aku kudet banget soal bisnis. Jadi googling2 deh tentang dia.

    ReplyDelete
  25. Saya nggak tau beliau mba hahah gak updste berita2 bisnis 😅 dari baca ini jadi tau deeh

    ReplyDelete
  26. Sosok yang inspiratif.
    Mengajarkan banyak kebaikan dan sejatinya kebaikan itu akan kembali pada dirinya sendiri.

    ReplyDelete
  27. Suka sama closingnya!

    "... don't ever cheat in doing business!"

    Pelajaran buat kita semua juga dong ya

    ReplyDelete
  28. Yes agree with that. Cheating is not the only way! Honesty is the best way to have a successful life.

    ReplyDelete
  29. I do learn from this case. I hope tjere is more person like CHong Ken Pet again

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  30. OMG, 88 million USD?? What a worst act from Chong Ket Pen. Oh my, cheating will always be a bad action, not only in business, it's also the same in daily life too.

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  31. Aku roaming bacanya karena pake bahasa Inggris tapi kayaknya ini pengusaha yg sukses yaa

    ReplyDelete
  32. Meski banyak masalah, tapi beliau
    pengusaha sukses ya. Etapi beliau juga sukses membeli perusahaan yang nyaris bangkrut katanya, baca di berita sih . Aku belajar baca dan menerjemahkan enggreeesss nihh, hahahaa

    ReplyDelete
  33. Serem memang dunia bisnis kalau ketemu orang yang curang. Jadi bisnisman memang harus jujur, biar dapat kepercayaan

    ReplyDelete
  34. aku baru tahu chong ket pen mba, nambah wawasanlah ya mampir dan baca artikel ini hihihi...

    ReplyDelete
  35. Inspiratif banget. Pokoknya jangan pernah curang dalam hal apapun ya, karena jatuhnya pasti gak akan berkah

    ReplyDelete
  36. pelan pelan ku baca seksama, karena masih gagu liat english, jadi belajar belajar lagi, sangat menarik konsep blognya ada tulisan englishnya

    kadang memanfaatkan peluang hampir mirip bersiasat dalam bisnis yaa, bingung juga, padahal kan yang namanya bisnis itu yang penting buat enak makan dan tidur, kalo bisnisnya bikin gak tenang sampe ke bawa tidur, berarti gak sehat cara mainnya

    ReplyDelete
  37. waduh, banyak fraud yak. Malu ... usaha keras dan nama baik malah jadi hancur karena fraud.

    ReplyDelete

Terima kasih sudah berkunjung :)
Saya akan senang jika teman-teman meninggalkan komentar yang baik dan sopan.
Mohon maaf komentar dengan link hidup akan saya hapus ^^.

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