Kojadi board: Why we suspended Ng as chair

The board of directors of Koperasi Jayadiri Sdn Bhd (Kojadi) held a board meeting on July 17, 2019 to hear and consider both verbal and written explanationsgiven by Ng Peng Hay in regard to the alleged acts and conduct which were, in the view of the board members, detrimental to the interest of Kojadi, particularly his acts and conduct after the board meeting held on June 27, 2019.

After due consideration, the board of directors unanimously decided to suspend Ng’s chairpersonship and directorship until the next annual general meeting (AGM) or extraordinary general meeting (EGM) in accordance with Article 39(2)(b) of Kojadi’s by-laws whereupon the AGM and EGM may confirm or set aside the decision of the board of directors.

During the meeting held on July 17, 2019, 14 directors unanimously decided that Ng’s statements, acts and conduct, particularly his statements, acts and conduct after the board meeting held on June 27, 2019 had violated or is in breach of Kojadi’s by-laws and had adversely affected Kojadi’s interest, as he has, amongst others, on June 28, 2019 issued a press statement contrary to the board’s decision which has caused damage to Kojadi; on July 2, 2019 released an unconfirmed or unverified version of the board’s meeting minutes to the media; on July 3, 2019, Ng issued another press statement announcing that Kojadi’s account had been frozen by MACC without the consent and/or mandate of the board.

All above-mentioned statements, acts and conduct done without the knowledge and/or consent and/or mandate of the board are also tantamount to a breach of the confidential and non-disclosure secrecy undertaking signed by Ng as board member of Kojadi, as he has divulged or disclosed private and confidential information of Kojadi to third parties. 

Moreover, his aforesaid statements, acts and conduct are also clearly in violation and/or in breach of Article 23(1)(a) and (b) of Kojadi’s by-laws. Thus, he has disregarded his duty to Kojadi as chairperson as well as a member of Kojadi, and has caused detriment and harm to Kojadi.

The board of directors had also decided on July 9, 2019 that during his temporary suspension period, Ng shall immediately refrain from doing the followings as the chairperson, or a director, of Kojadi: -

1. Issue any press statement;
2. Disclose any matter of Kojadi to any parties;
3. Represent Kojadi in any manner whatsoever;
4. Perform any act which will be detrimental to Kojadi.

However, Ng has failed to abide by the resolution of the board of directors and had continued to divulge or disclose the contents of the board meeting to third party.

In this regard, Ng had once again on July 9, 2019 issued statements to the media. According to a news report by Sin Chew Daily on July 10, 2019, Ng has attempted to justify his acts by alleging that “when MACC named Kojadi among the 41 recipients linked to 1MDB, it prompted him to hold the emergency board meeting on June 27”.

This particular statement is obviously a deliberate attempt to mislead the public and the members of Kojadi, as it is an undeniable fact that Kojadi was never listed amongst the 41 recipients. His aforesaid acts have tarnished the image and reputation of Kojadi in the eyes of the public and members of Kojadi and had created misconception and confusion among the members of Kojadi.

The board of directors wishes to clarify that the board had written in officially to MACC on Dec 26, 2018 to inform them in regard to the grant of RM15 million from Yayasan 1MDB for a youth micro-credit loan scheme in 2012. 

On June 27, 2019, the board was against Ng’s proposal to immediately refund the grant. 

Instead, the board authorised Ng to follow up, in writing, in regard to MACC’s letter dated Jan 30, 2019, in view of the latest development before deciding on the next move to safeguard the interests of 60,000 members. 

However, he did not execute the resolution of the board, and refused to sign the related documents prepared by Kojadi.

The board of directors of Kojadi reiterates that the co-operative received a grant of RM15 million through Yayasan 1 MDB in 2012 to set up a Microcredit for Youth Loan Scheme, which was duly approved by the Malaysian Co-operative Societies Commission (SKM).

As the co-operative that promotes and manages this grant, Kojadi abides by a strict code of professionalism, transparency, integrity and lawful operating practices, in giving financial assistance to qualified members. To date, a total of 1,264 youth entrepreneurs have benefitted from it. Kojadi also submits quarterly reports to the SKM regarding the status of the loans.

The Kojadi board of directors emphasises that although MACC had frozen the youth micro-credit programme’s account in RHB Bank Berhad for 90 days, other bank accounts of Kojadi and day-to-day operations of Kojadi are not affected and Kojadi is commencing business and operations as usual.

The board of directors of Kojadi would like to express our gratitude to Kojadi members and the public who showed concern to Kojadi and continue to place their full trust in us. 

The board of directors reiterates that we shall not respond to any statements made by the former chairperson. We shall instead focus on Kojadi’s operations and its future direction. If there is any enquiries by Kojadi members, please contact Kojadi’s office directly.

Following the suspension of Ng, the board of directors’ new line up is as follows:

Board of directors

Chairperson: Koh Nai Kwong

Vice-chairperson: Hoo Seong Chang

Secretary: Yik Phooi Hong

Treasurer: Ng Fook Heng

Asst secretary: Chow Liong

Asst treasurer: Lim Chin Hai

Director/Exco: Lim Si Cheng

Director: Ooi Saw Choo

Director: Woon Ching Fatt

Director: Chuah Boon Kiang

Director: Goh Ah Ling

Director: Ong Chong Swen

Director: Toh Chin Yaw

Director: Dr Loke Sim Fatt

-Mkini