…The cooperative was set up by MCA in 1981 to provide educational loans for students to pursue higher education.
22 July 2019
Events leading to my suspension as Kojadi chair
COMMENT | By way of a letter dated July 18, 2019, the board of directors of Koperasi Jayadiri Sdn Bhd (Kojadi) had suspended me as a board member under Article 39(2)(b) of the by-laws of Kojadi.
Under Article 39(2)(b) of the by-laws, a board member may be suspended only when the majority of the board members are satisfied that the board member had acted in a manner which is prejudicial to the interests of Kojadi, according to the Co-operatives Regulations 2010.
I deeply regret the decision of the board members as there is clearly no evidence whatsoever that I had in any way acted in a manner which is prejudicial to the interests of Kojadi. I had served on the board for the last 23 years and had always acted in the best interests of Kojadi.
In order to put the matter in the proper context, I wish to highlight to the public that as early as July 10, 2018 before there was any public controversy over the RM15 million grant from Yayasan 1MDB to Kojadi, it was already discussed and decided in the board meeting that as I had signed the Corporate Integrity Pledge with the MACC on behalf of Kojadi, Kojadi had made a unilateral declaration that it will not commit corrupt acts, will work toward creating a business environment that is free from corruption and will uphold the anti-corruption principles in the conduct of its business and in its interactions with its customers and stakeholders and the government.
As such, the board resolved that:
“Whilst the board is aware that the grant, which was also endorsed and approved by the SKM (Suruhanjaya Koperasi Malaysia), is not to be repaid and that the grant was accepted in good faith from the government, it is a duty of the society to ascertain the current state of the grant which originated from Yayasan 1MDB/1MDB and that it is not related to any of the ongoing investigations related to 1MDB. To this end, the board resolved that:
- The chairperson and/or exco members and the senior management of the society to inform and declare to the relevant authorities, eg MACC on the grant received from the government via Yayasan 1MDB,
- The society will provide its full cooperation to the authorities on the Grant.”
Subsequently, during the board meeting dated June 27, 2019 (“the said board meeting”), it had been brought to the attention of the board members that the finance minister had announced that those who received money from the 1MDB Foundation, 1MDB or 1MDB charity club are to return the money and not to wait for the MACC to freeze their accounts.
During the said board meeting, there was a lengthy deliberation on the matter and the board was of the opinion that the status and the situation of the grant should be ascertained by seeking the advice of the MACC or relevant authorities, and to forestall the listing of Kojadi in the MACC list which may result to the society’s accounts being frozen. The board deliberated at great length and resolved:
- To authorise the chairperson to follow up with MACC/relevant authorities on the status of the grant via a letter.
- To authorise chairperson to discuss with the relevant authorities, if required on the 1MDB grant.
- To surrender the 1MDB grant, if required, subject to the agreement on the terms with the MACC or relevant authorities, eg amount, timeframe, mechanism etc.
- To seek legal opinion on the matter.
- To brief and consult MCA President on the matter.
Due to the urgency and gravity of the matter, I had to meet with MACC immediately to discuss the matter and get the MACC’s advice in order to forestall the listing of Kojadi in the MACC list which may result in the society’s accounts being frozen. The mandate had been given to me by the board to discuss the matter with MACC and to ascertain the status of the RM15 million grant, both by way of discussion and letter.
After the said board meeting, I had also called MCA president Wee Ka Siong (above) on June 27, 2019 to brief him on the matter. However, he had interfered in the matter by giving a firm “party instruction” that I am not to attend any meeting or interview with MACC until a meeting with MCA leaders the following week. He sent a message to all the board members as follows:
“In short, don’t attend any meeting/interview with MACC until we meet up next week. Otherwise, it will be construed as defying the party instruction of an attempt to make Kojadi an independent entity and has no connection whatsoever with MCA. No way! Hope all Kojadi directors will put Kojadi and MCA interest above all!”
I then decided to quit MCA as a sign of protest.
Kojadi is an autonomous entity
As a co-operative, Kojadi is an autonomous entity and should act independently. My duty as the chairperson is to primarily protect the interests of Kojadi and that of the 60,000 members and also the 60 staff. I have been elected by the delegates at the annual general meeting and I have to answer to the members of Kojadi and not to the MCA president.
Also, my obligation as mandated by the board to co-operate with the authorities takes precedence over following the instructions of the MCA president with blind loyalty.
From Wee’s subsequent press statements on this matter, it is clear that he is taking the position that the RM15 million grant from Yayasan 1MDB is legal and should not be returned. As such, it appears that the MCA president is now the new spokesperson for Kojadi and had usurped my role as the chairperson.
If this state of affairs is allowed to continue, it will bring Kojadi on a collision course with the authorities on the issue of the RM15 million grant and lead to serious consequences such as freezing of accounts and disruption in the business operations of Kojadi. These are the things that will jeopardise the interests of Kojadi and cause irreparable harm and damage to Kojadi which I was trying to prevent as the chairperson.
My disagreement with the MCA president on the issue of my co-operating with the authorities on the RM15 million grant cannot by any stretch of imagination be construed as being detrimental to Kojadi.
Doing the right thing and co-operating with the authorities to ensure that Kojadi steers clear of criminal and civil sanctions was an act to protect and not jeopardise the interests of Kojadi.
Furthermore, my action of co-operating with the authorities on the RM15 million grant is clearly within the mandate given by the board both on July 10, 2018 and June 27, 2019. The board should be supporting me for carrying out the mandate given by the board without any fear or favour.
Regrettably, in carrying out the mandate given by the board, I had now been suspended by the very same board which gave me the said mandate.
Wee in his press statement dated July 13, 2019 had said that at the said board meeting dated June 27, 2019, the board had merely decided to follow up with MACC by way of a letter and not to surrender the money to MACC on June 28, 2019.
As such, he concluded that I had lied and acted in contravention of the board decision. I wish to emphatically state that I had never informed Wee that I wanted to surrender the money to MACC on June 28, 2019.
What I wanted to do was to meet with MACC to clarify Kojadi’s position and to seek MACC’s direction and guidance as mandated by the board.
His allegation that I had lied is a baseless allegation, calculated with a pernicious motive to tarnish my reputation.
As such, I fully reserve my rights to commence legal action against him for defaming my character and reputation.
NG PENG HAY is the Koperasi Jayadiri Sdn Bhd (Kojadi) chairperson (suspended)
The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
13 July 2019
Recovered Yayasan 1MDB funds not from Kojadi – MCA president
The RM6.1 million of Yayasan 1MDB funds which the government recovered did not come from MCA-founded Koperasi Jayadiri Malaysia Bhd (Kojadi), said the party’s president Wee Ka Siong.
“I can confirm that we did not return the money,” he told a press conference at the MCA headquarters in Kuala Lumpur today.
Yesterday, Finance Minister Lim Guan Eng said a total of RM925 million 1MDB-linked funds have been recovered.
RM805.8 million was recovered from the US while RM97.3 million was recovered from Singapore.
A total of RM27 million was also recovered from Malaysian entities comprising RM20.9 million of 1MDB funds and another RM6.1 million of the company’s charitable arm, Yayasan 1MDB.
Lim, in his statement, had also praised suspended Kojadi chairperson Ng Peng Hay for trying to return a RM15 million grant it got from Yayasan 1MDB. Ng said his attempts were allegedly blocked by Wee but the latter denied this.
Wee, in his press conference today, questioned Lim’s praise of Ng when no money was actually returned by Kojadi.
Wee said Kojadi must be differentiated from MCA.
“It is true that MCA founded Kojadi but not all party members are Kojadi members. They need to contribute to Kojadi to become members.
“The cooperative is owned by some 60,000 members of various races. It is not just MCA,” he said.
He questioned why the government was targeting Kojadi when 1MDB-linked funds were also given to charities and other groups.
4 July 2019
29 June 2019
Koperasi Jayadiri Sdn Bhd (Kojadi) chairperson Ng Peng Hay today claimed that board members of the MCA-owned cooperative were forced to sign a statement against him over the 1MDB funds it received.
Yesterday, Ng dropped a bombshell when he claimed MCA president Wee Ka Siong tried to block his meeting with the MACC in a bid to surrender the RM15 million channelled from Yayasan 1MDB to Kojadi.A statement signed by 11 of the 14 Kojadi board members was later issued denying any interference from Wee.
“Shortly after the issuance of the press statement last night, at about 10.30pm, one of the board members called me to apologise to me that he was ‘forced’ to sign the press statement,” Ng said in a statement.
“Who forced the 11 directors to sign the press statement?… Thankfully, three other directors refused to sign.”
The statement also disputed Ng’s claim that the Kojadi board had authorised him to meet with the MACC over the funds from 1MDB.
However, Ng explained that the board had authorised him to meet with “relevant authorities” over the matter, which he said would include the MACC.
“I wish to repeat that my intention is to safeguard the interest of Kojadi, by forestalling the listing of Kojadi in the coming MACC list resulting in freezing of Kojadi accounts, which will have a disastrous impact on Kojadi’s finances, staff morale, members confidence, payments of salary and collections of loans,” he said.
DAP man lodges report against MCA president over 1MDB funds dispute
Federal Territories DAP Youth chief Lee Bing Hong has lodged a police report against MCA president Wee Ka Siong over a dispute brewing at Koperasi Jayadiri Sdn Bhd (Kojadi) in relation to funds it received from 1MDB.Lee wants police to look into the complaint made by Kojadi chairperson Ng Peng Hay, who said he had proposed to return the RM15 million grant the MCA-owned cooperative received from 1MDB in 2012.Ng said he was subsequently instructed by the Kojadi board to meet with the MACC on the matter, but was blocked by Wee.”I ask that the police investigate the MCA president under Section 186, Section 202 and Section 203A of the Penal Code,” Lee said in his police report lodged at the Tun HS Lee police station in Kuala Lumpur last night.Section 186 concerns the obstruction of a public servant in discharging public functions, while Section 202 concerns the intentional omission of information relating to a crime, and Section 203A concerns the disclosure of information.https://www.malaysiakini.com/news/481649..https://twitter.com/gst183/status/1144787427497660416…28 June 2019..https://twitter.com/malaysiakini/status/1144629042370338817Eleven out of 14 board members of Koperasi Jayadiri Malaysia Bhd (Kojadi) have refuted its chairperson’s claim that the board had instructed him to meet with the MACC today over 1MDB funds the co-op had received.In a statement, the 11 members said the board meeting yesterday had resolved firstly, to write to the MACC as a follow-up and secondly, to discuss the matter with the MCA leadership.”During the Kojadi board meeting yesterday, there was no resolution for chairperson Ng Peng Hay to meet MACC chief commissioner Latheefa Koya or any other officials today,” said the 11 members in a joint statement.
.The 11 board members also said the grant had nothing to do with former prime minister Najib Abdul Razak’s bank accounts which are now subject to MACC scrutiny.
Kojadi accuses Wee of blocking meeting with MACC to discuss 1MDB-linked grant
PETALING JAYA: An MCA-owned cooperative has accused party president Wee Ka Siong of stopping its chairperson from meeting the Malaysian Anti-Corruption Commission (MACC) over 1MDB-linked funds.Koperasi Jayadiri Malaysia Berhad (Kojadi) chairman Ng Peng Hay has also resigned as an MCA member as a sign of protest.In a statement today, Ng said Kojadi received a “financial grant” of RM15 million from Yayasan 1MDB in 2012 to implement a socio-economic micro-credit scheme called Kojadi Micro Credit Scheme for Youths.He said the grant has since been fully disbursed to 1,264 small enterprises under the scheme, while RM1.72 million was written off as “bad debts”, RM1.03 million paid off as tax, and RM8.06 million still held in cash.“In the light of MACC’s announcement of the civil forfeiture list of 41 names last week and numerous statements in the press that there will be more civil forfeiture against those who had received 1MDB money, I called for an emergency board meeting yesterday,” he said.“In view of the RM15 million financial grant from Yayasan 1MDB, I tabled a proposal to the board meeting to return the aforesaid financial grant from Yayasan 1MDB.“My intention was to safeguard the interests of Kojadi, its 60,000 members and staff as any civil forfeiture process against Kojadi could adversely impact the operation of Kojadi and affect its 60,000 members and the livelihood of over 50 staff,” he added.Ng said the board directed him to meet with the anti-graft body today to clarify the cooperative’s position and seek its direction and guidance.“However, before I could secure an appointment with MACC, the president of MCA issued an instruction to all directors of Kojadi via social media to stop this meeting with MACC and to meet with party leaders on July 1 or 2 (to be confirmed).”Ng said he objects to what he said was “interference” by Wee in the day-to-day management of Kojadi.“I will call for another emergency board meeting of Kojadi to re-table my proposal to refund the financial grant from Yayasan 1MDB,” he added.When contacted, Wee said he will issue a statement on the matter soon.https://www.freemalaysiatoday.com/category/nation/2019/06/28/kojadi-accuses-wee-of-blocking-meeting-with-macc-to-discuss-1mdb-linked-grant/
Funds for Kojadi not linked to me, says Najib
PETALING JAYA: Najib Razak has come to the defence of an MCA-linked cooperative after it came under the spotlight following allegations by its chairman of interference in an investigation of 1MDB-linked funds.
Yesterday, Ng Peng Hay, chairman of Koperasi Jayadiri Malaysia Berhad (or Kojadi), alleged that MCA president Wee Ka Siong had stopped him from meeting officers of the Malaysian Anti-Corruption Commission over 1MDB-linked funds, a charge the party has since dismissed.
Ng had earlier revealed that the co-op had received a “financial grant” of RM15 million from Yayasan 1MDB in 2012 to implement a socio-economic micro-credit scheme.
Najib revealed today that funds for the scheme came from both 1MDB, which is a government investment arm, and other corporate sponsors.
The former prime minister said the money for the scheme had nothing to do with 1MDB-linked money alleged to have been deposited in his personal account.
“Which is why till now MACC has not demanded that Kojadi return the grant,” he said in a Facebook posting referring to the announcement of a list of 41 names against whom civil asset forfeiture proceedings were being sought.
Najib then accused the DAP of using the issue to attack the MCA, including lodging a police report.