The Malaysian Insight

THE row between Koperasi Jayadiri Sdn Bhd (Kojadi) chairman Ng Peng Hay and MCA president Wee Ka Siong over the 1Malaysia Development Berhad (1MDB) funds has threatened to boil over.

The Malaysian Insight understands that an emergency meeting was held on Thursday where all Kojadi directors who attended had agreed to cooperate with the Malaysian Anti-Corruption Commission (MACC) in the agency’s civil forfeiture suit to recover 1MDB funds.

The directors were apparently “ready” to repay the RM15 million Kojadi received in 2012 from 1MDB, although the money had been used to fund a micro-credit scheme for youths.

Sources said the money had been disbursed to 1,264 small businesses, cooperatives and also used to pay taxes.

“We were preparing to pay back the money. We also had taxes to pay and we were waiting for the MACC meeting to see if it’s tax deductible.

“We were also supposed to meet with the MCA leadership to make a final decision.

“I don’t understand why Ng spoke of his own accord. This is different from what the directors decided.

“We also do not have a reason to pay back the funds yet, we still need to consult the authorities and even the MACC has yet to claim the money directly from Kojadi. So, why should we return it so quickly?

“The money was given to us as an allocation, we did not know that legal issues would arise and we were prepared to make the repayment,” a source said.

Another source, who is a director, said: “Wee told us to sit tight and discuss the matter before taking any action.”

The source said the directors are supposed to meet Wee on this Tuesday and all have agreed to attend.

On Friday, Ng complained of alleged interference from Wee, who allegedly prevented Kojadi directors from meeting with MACC on the matter.

Ng is a long-time MCA member, who released a private statement on Thursday about the meeting to discuss returning the RM15 million and said they ran into Wee’s resistance.

Just six hours after his statement was issued, 11 Kojadi board members denied that the RM15 million used in the micro-credit scheme came from former prime minister Najib Razak’s account and that the meeting did not resolve to go to the MACC.

Another Kojadi director said Ng was worried that the issue would affect his appointment as a director of a listed company and chose to go public.

Ng told The Malaysian Insight that he is a director of a listed company.

He admitted his concerns but said Kojadi’s directors do not seem to understand the gravity of the MACC situation.

Ng said if the MACC chooses to freeze the cooperative’s accounts, it will not be able to pay salaries, expenses, and the welfare of the staff will be affected.

Kojadi received RM15 million from Yayasan 1MDB in 2012.

So far, RM1.72 million has been slated as bad debt, another RM1.3 million has been used to pay taxes, while Kojadi still has RM8.06 million left from the funds.

It is understood that Kojadi has enough funds to make the RM15 million repayment and only related projects will be affected.

Another director said the MACC has yet to publicly claim the money from Kojadi, and the cooperative could first evaluate its financial situation, clarify with the graft-buster the amount of money being claimed, before making a decision.

The 11 directors who issued the statement on Friday night are board vice-chairman Hoo Seong Chang, treasurer Ng Fook Heng, assistant secretary Chow Liong, assistant treasurer Lim Chin Hai, and directors Koh Nai Kwong, Ooi Saw Choo, Woon Ching Fatt, Lim Si Cheng, Goh Ah Ling, Toh Chin Yaw and Lok Sim Fatt.

Ng said the next day that one of the directors had told him he was forced to sign the joint statement and apologised.

Another director, Ong Chong Swen, was not at the meeting as he was attending a conference in Japan.

It was understood that another two directors, Yik Phooi Hong and Chuah Boon Kiang, did not attend the meeting to avoid getting into trouble.

“Kojadi has become one of the best managed cooperatives in the country after many trying years and has benefitted many. We should not let these issues imperil its future,” one of the directors said.

Wee is expected to hold a press conference today to explain the party’s stand on this matter. – June 30, 2019.