K. MAHADEVAN, a long-time planter in the East-West One Group (EWOG) scheme, has voiced his concerns regarding the delay in the release of funds passed during the scheme’s Planters’ Meeting which would pave way for the success of a rehabilitation and restructuring (R&R) exercise.
Earlier, Mahadevan or Devan as he is known among fellow planters, expressed gratitude to the Companies Commission of Malaysia (SSM) for its swift response when issuing a letter for the trustees to release the funds in addressing the concerns raised by investors.
He together with other planters nevertheless remain troubled by the fact that the bulk of the approved funds – approximately RM30 mil – have not been disbursed.
“The planters have spoken. The resolutions passed during the Planters’ Meeting on Aug 12, 2024 clearly gave the mandate for the release of funds to rehabilitate the plantations,” he told FocusM.
“The trustee whose role is to comply and release the funds accordingly and timely aren’t doing their part. This will result in the failure of approved RnR by the planters in their AGM.”
Partial release raises concerns
Devan is concerned that Pacific Trustees Bhd (PTB) may be stalling or only be releasing a fraction of the approved funds for reasons best known to themselves rather than fulfilling its duty by fully discharging its obligations of releasing the “very much needed funds” to realise the rehabilitation exercises.
He urges PTB to release all remaining funds immediately so that works on the plantation can be managed on a timely and smooth manner in the quest to revive EWOG’s estate before further deterioration occurs.
“In a letter sighted by FocusM, a group of planters have raised serious concerns to SSM regarding on-going investigations into PTB’s director,” asserted Devan.
“One major red flag is the recent arrest of Paul Cheah, a director of PTB, by the Malaysian Anti-Corruption Commission (MACC) in connection with an alleged RM104 mil fraud case.
“This itself raises questions about PTB’s internal governance and whether the delay in fund release is linked to internal mismanagement.”
Urgent action needed
The planters are now urging SSM to take decisive action to ensure that PTB fulfils its obligations without further delay. Key measures requested include:
- Immediate inquiry: Investigate PTB’s refusal to release funds and determine if there are underlying irregularities.
- Clarification of PTB’s authority: Confirm if PTB has the legal grounds to withhold funds despite the planters’ clear mandate.
- Investigation into potential misconduct: Assess whether PTB’s actions are linked to internal governance failures, particularly given the MACC probe.
Moving forward, Devan emphasised that the continued delay is not just a regulatory issue but “threatens the financial future of thousands of planters”.
“If immediate action is not taken, the plantation’s decline maybe be irreversible and will reach a point where the R&R plan be disrupted,” he projected. “This is not just about compliance; it is about the livelihood of planters who have entrusted their investments in good faith.”
For now, the planters remain hopeful that SSM as the regulatory body overseeing trust companies will ensure that PTB discharges its responsibilities effectively.
“We are grateful for any prompt action from SSM that will safeguard our interests and ensure PTB fulfils its duties without further delay,” added Devan. – April 4, 2025
