KUALA LUMPUR: National Land Finance Cooperative Society (NLFCS) Limited chief executive officer and secretary-general, B Sahadevan, has debunked several allegations of mismanagement made against NLFCS.
Recently an ad-hoc committee calling itself “Save NLFCS Action Committee” questioned the sale of the cooperative’s Apollo TTDI Medical Centre and several other assets.
On the sale of Apollo TTDI Medical Centre, Sahadevan said that the hospital was bought by a doctor who roped in the NLFCS to manage it.
“It was already running at a loss before NLFCS came into the picture,” Sahadevan said at his office in Wisma Tun Sambanthan here yesterday.
The NLFCS annual report for 2009 which Sahadevan provided, however, showed that the medical centre recorded a post-tax profit of RM2,389,556 on a turnover of RM3,346,122.
Other NLFCS subsidiaries that were either sold or closed, according to Save NLFCS Action Committee, were the Kota Tinggi Steel Mill, a hospital in Taiping and Mamtaj Travel Agency.
The committee also accused the cooperative’s long-serving directors of practising nepotism.
Countering the allegations, Sahadevan said NLFCS chairman KR Somasundram’s son, Dr S Gandhi, was appointed as a director of the medical centre to provide professional advice.
Source of funds
Sahadevan also said that members were paid 8% in dividends for the past 18 years, not 6% as alleged by the disgruntled group
.On the concerns of a NLFCS member’s son on the source of funds to pay out dividends, Sahadevan said: “No one can sustain 8% in dividends by selling off assets.”
As for the sale of several other assets, Sahadevan said that it was a norm for companies to sell off non-perfoming businesses and keep the profitable ones.
Sahadevan said that contrary to the allegations made by the ad-hoc committee, NLFCS has purchased industrial properties in Glenmarie, Shah Alam and Kulim Hi-Tech Park in Kedah.
“We are earning RM13 million from Kulim and RM15.5 million from Glenmarie in rentals.”
Of its 49,682 members, Sahadevan said that their membership ceases on their demise and the value of monies was then given to their nominees or their immediate family members.
On Friday, Save NLFCS Action Committee adviser, S Thuraisingham, made a series of allegations against the largest Indian cooperative society in Malaysia.
NLFCS was formed in 1960 under the patronage of then MIC president, VT Sambanthan to allow land ownership by Indian estate workers. - FMT
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.