Phee Boon Poh benefitted immensely from the Sungai Lembu illegal factory

The Third Force

TTF: I sincerely hope the MACC conducts a discovery into Phee Boon Poh’s brother’s link with Edmund Gan Eu Lee, the owner of the illegal factory at Kampung Sungai Lembu (see news item below). 

To recap, Edmund is the director of GBH (BM) Sdn. Bhd. and is closely associated with timber tycoons both in the Peninsula of Malaysia and in Sabah and Sarawak. Through GBH, Edmund commenced illegal operations in Kampung Sungai Lembu on a small scale with the intent of processing sawdust that came from timber and furniture related factories. The bosses of these factories conducted business with Edmund through Omega Top Trading and were well-connected with is owner, Lim Sew Hua.

But you can read more about this and GBH’s links with Biowoodtech Sdn Bhd (a BBQ Charcoal Briquette producer also owned by Edmund Lee) here. Suffice to say, Biowoodtech sought to expand operations and undertook to seek funding for the purchase of land and machinery vehicles. The company pumped in RM1 million to kick start the expansion and promised potential funders a 30 percent stake upon the injection of funds.

Now, it is not that Edmund failed to lure investors. On the contrary, there were several people who were very attracted to the RM4 million and RM6 million loan options Edmund proposed (READ FULL STORY HERE). The problem was more a miscalculation on Edmund’s part than it was the willingness of investors to consider those options.

You see, Edmund discovered that the cost of installing a toxic fume-mitigation system to accommodate his plans was severalfold what he had imagined. None of the potential investors were willing to fork out that kind of money, particularly since Edmund was seen pumping only a fraction (RM1 million) of the anticipated RM15 million it would eventually have cost him to realise the scale of operations he had in mind.

And that put the Biowoodtech owner on the horns of a very serious dilemma. He had already obtained a loan from an investor who agreed to some terms and conditions of repayment. Naturally, the loan was not enough to expand the factory to the scales Edmund required. And without expansion, Edmund knew that he would not be able to observe the terms of repayment he agreed upon with the investor.

That left the Biowoodtech owner with two options – either he expanded operations without installing a proper fume-mitigation system, or transferred operations to a place that he felt was not on the Department of Environment’s (DoE’s) radar. Seeing that Biowoodtech was located right in the middle of a light industrial zone in Kedah, Edmund decided to transfer a bulk of its operations to a facility he already had up and running in Kampung Sungai Lembu.

To ensure that expansion works at GBH would go undetected, Edmund sought Phee’s assistance through the state exco’s half-brother, Phee Boon Chong. Just so that you know, the younger Phee is involved with a sole proprietorship that helps sell some of GBH’s and Biowoodtech’s products. Why do you think the elder Phee prevented MPSP from tearing the Sungai Lembu factory down?

All I can say for the moment – with a hundred percent certainty – is that Phee benefited immensely from the expansion of GBH’s operations at the ill fated Sungai Lembu village. Let’s just wait and see what the MACC’s findings are on the matter. I have much to say but am prevented from doing so pending the outcome of the anti-graft agency’s discovery.

BUKIT MERTAJAM: The Malaysian Anti-Corruption Commission (MACC) is in the final stage of completing the investigation paper on a factory in Kampung Sungai Lembu here, which is alleged to have been operating illegally since the past 10 years.

MACC Chief Commissioner Tan Sri Dzulkifli Ahmad said the commission would submit the completed paper to the Attorney-General Chamber’s for further action.

“I cannot tell specifically when, but when it is completed, we will submit the paper to the Attorney-General’s Chambers,” he told reporters after handing over aid to flood victims in Taman Makok here today.

About 600 flood victims were given aid which included mattress, clothing and essential food items, such as rice, cooking oil and sugar.

Last Aug 10, MACC raided the factory in Kampung Sungai Lembu here for allegedly polluting the air an environment.

According to reports, the factory uses conventional method of burning sawdust to make activated carbon, which is used widely in air purifiers, water filters and air-conditioners.

Following the raid, Penang state executive council member Phee Boon Poh and two members of a family, who are the director and manager of the factory, were detained by MACC to facilitate investigation.

Meanwhile, on the probe against Felda Global Ventures (FGV), Dzulkifli said it was also in the final stage and the investigation paper would be submitted to the Attorney-General Chamber’s when completed.

Source: Bernama