THE Minority Shareholders Watch Group (MSWG) wants to know from Eastern & Oriental Bhd (E&O) at the latter’s forthcoming annual general meeting as to why a related party transaction (RPT) the company inked with Kerjaya Prospek Group Bhd is on a “mutually agreed” term instead of on “an arm’s length” basis.
Recall that E&O has awarded construction contracts worth RM55.1 mil during its FY3/2021 to Kerjaya Prospek Group Bhd where Datuk Tee Eng Ho is a major shareholder of the company as well as Kerjaya Prospek.
“Are the ‘mutually agreed’ contract terms in the contracts awarded to KPGB more favourable compared to ‘arm’s length’ terms?” asked the shareholder activism group.
Additionally, MSWG also requested E&O to specify the process of awarding construction contracts to contractors – whether they are at ‘arm’s length’ or are ‘mutually agreed’ level –and whether there are tender processes involved.
E&O will stage its 94th AGM virtually on Aug 25 (Wed) at 2pm via the TIIH Online website provided by Tricor Investor & Issuing House Services Sdn Bhd.
Elsewhere, MSWG is enquiring from Eduspec Holdings Bhd as to why the company has left its chairman post vacant for many years when it has informed the former in a letter dated Aug 26, 2020 that the company has identified a potential candidate who was expected to fill up the vacancy in early 2021.
“Why has the company aborted the appointment of the identified candidate to fill the vacant position?” asked MSWG. “As the company’s board has five independent non-executive directors, why has the board not appointed one of them as its independent chairman?”
In an unrelated development, MSWG also queried the rise in Eduspec’s deposits and pre-payment which has led to an increase in the company’s receivables during its FY2/2021.
Eduspec’s has reported that its receivables increased to RM18.6 mil (FY2/2020: RM13.9 mil) mainly due to increase in deposits amounting to RM9.3 mil (FY2/2020: RM3.9 mil) and pre-payment of RM8.7 mil (FY2/2020: RM4.1 mil).
“What is the reason for the increase in deposits and prepayment? What is the increase in deposits and prepayments related to?” asked MSWG.
“Other receivables written off was approximately RM6 mil (FY2/2020: Nil). What is the nature of the other receivables written off? What were the measures taken to recover the RM6 mil prior to being written off?”
Eduspec will stage its 17th AGM virtually on Aug 26 (Thurs) at 10am via the TIIH Online website provided by Tricor Investor & Issuing House Services Sdn Bhd. – Aug 21, 2021
