PACIFIC Trustees Bhd (PTB) has categorically denied any allegations of deliberate delay the release of funds under the East West One Group (EWOG) planters’ schemes.
It further claimed that such allegations are factually incorrect, unfounded and misrepresent PTB’s actions as a trustee operating under strict regulatory frameworks.
“As trustee, PTB’s primary obligation is to act in the best interest of the planters by ensuring compliance with all applicable laws and regulations in order to safeguard the planters’ rights and interests,” it pointed out in a media statement,
“All actions undertaken by PTB to-date have been guided by the interest of the planters and adherence to legal and regulatory requirements – not by any purported intent to delay the release of the funds.”
The trustee is reacting to concerns expressed by long-time EWOG scheme planter K. Mahadevan who has raised his concerns regarding a delay in the release of funds passed during the scheme’s Planters’ Meeting (on Aug 12, 2024) which would pave way for the success of a rehabilitation and restructuring (R&R) exercise.
PTB said it is therefore imperative for it to review and scrutinise the draft Supplemental Trust Deeds (STDs) to ensure, among others, that the Planters’ Meeting was called in accordance with all legal and contractual requirements.
“Or that the draft STDs reflected the events of the Planters’ Meeting as well as the minutes of meeting accurately,”
“The STDs were finalised and executed by the parties on Dec 30, 2024 and subsequently submitted for stamping in January 2025.”
Pending SSM’s green light
As the Planters are well aware, PTB further noted that there is currently a standing directive issued by the Companies Commission of Malaysia (SSM) on April 4, 2024 which categorically sets out the amounts that the trustee may release from the trust accounts for purposes of the R&R exercise.
“It is important to note that PTB has a legal obligation to comply and strictly adhere to the directive,” it stressed.
As such, PTB said it required SSM’s express confirmation that:
- The directive is withdrawn and PTB may release the entire funds from the trust accounts to the Management Companies (as envisaged under the terms of the Supplemental Trust Deeds); and
- The CCM has no objections or amendments to the STDs.
“It must be emphasised that the management companies bear the duty and responsibility to lodge and obtain approval from the SSM in respect of the STDs,” PTB pointed out.
“PTB remains committed to ensuring that the resolutions can be successfully carried out by the management companies subject to due process and adherence to all regulatory requirements.”
Lack of supporting documents
As of today (April 8), PTB said SSM has not expressly confirmed the withdrawal of the standing directive nor approved the STDs or release of the entire funds from the trust accounts to the management companies.
“In the meantime, PTB has released the first tranche of funds to the management companies for purposes of the R&R exercise,” revealed the trustee.
“It is important to note that in discharge of PTB’s duties as trustee, PTB may only release funds to the management companies provided that the necessary supporting documents and receipts have been provided.”
As such, the remaining funds that may be released by PTB under the standing directive have not been disbursed immediately due to the lack of supporting documents from the management companies.
In this regard, PTB said it has made a request for these supporting documents which it has only received from the management companies on March 27, 2025.
“What is important to keep in mind is that in our capacity as trustee, we act independently and solely in alignment with our fiduciary duties to the planters who are the beneficiaries,” it asserted.
“While we remain open to engaging collaboratively with the management companies to address the issues that have arose, any cooperation on our part shall not be pursued at the expense of the planters’ rights and entitlements.”
In an unrelated development, PTB also denied that it is under investigation by the Malaysian Anti-Corruption Commission (MACC).
“A former director of PTB who resigned on Dec 6, 2024 is being investigated by MACC in a personal capacity. That investigation is unrelated to PTB or the present EWOG schemes,” explained the trustee.
“Any attempts to associate PTB with the MACC investigation are not only unfounded but also defamatory. PTB strongly denies any connection between the MACC investigation and the fund release process and reserves the right to take legal action against any party making such baseless claim.” – April 8, 2025
