Planter scheme EWOG responses to SSM’s order to freeze trust account funds

 

THE EAST West One Group (EWOG), Malaysia’s largest and most successful planter’s scheme operator in terms land bank size, has reiterated its full commitment to cooperating with the Companies Commission Malaysia (SSM) and all regulatory bodies to ensure compliance and to facilitate a thorough and transparent review process.

In this regard, EWOG said its management has sought to bring the on-going planter-related issues to planters by staging a planter’s meetings as provided by the trust deeds and the Interest Scheme Act 2016.

“Such cooperation underscores our dedication to upholding the highest standards of corporate governance and ethics,” EWOG pointed out in a media statement. “However, those attempts have been disrupted by a minority group of planters through court actions.”

Added the planter scheme operator: “The latest was an ad interim injunction that halted the meetings scheduled on April 5.  Regrettably, the interim injunction has not only halted the meetings but has also interrupted on-going rehabilitation efforts which commenced early last year.”

This disruption in rehabilitation work poses a significant challenge to safeguarding and enhancing the investment interests of the majority of its stakeholders, according to EWOG.

“The delay in rehabilitation has severely affected the yield of our plantations, making it increasingly difficult to restore and maintain the health and productivity of our biological assets, hence ultimately impacting the value of our investors’ holdings,” asserted the planter scheme operator.

“To this end, EWOG urges all planters to come together to support the re-scheduling of the planter’s meeting. It is vital that the voices of all the planters are heard and a decision be reached to path the way forward for all our schemes.”

Background

Recall that on April 28, SSM has issued an order letter to freeze funds in the trust accounts of East West One Planter’s Scheme, East West Horizon Planter’s Scheme and East West Planter’s Scheme 1.

The move was a follow-up to the investigations it is currently undertaking on the companies under East West One Group Sdn Bhd (EWOG).

“The order letter was sent to Pacific Trustees Bhd, the trustee for EWOG, on April 5 aimed at safeguarding the interests of investors in the schemes,” SSM said in a statement. “It is a follow-up to the proposal by EWOG as the main holding company to carry out a recovery and restructuring plan for the schemes by utilising funds in the trust accounts.”

Through the directive, SSM said Pacific Trustees is required to maintain funds in the Trust Account, Reserve Fund Trust Account and Sinking Fund Trust Account wherein the said funds are prohibited from being withdrawn and transferred to the management company in line with the provisions of Section 48(4)(a) of the Interests Scheme Act 2016.

“However, this fund freeze is subject to a recovery and restructuring plan for the schemes upon approval by a majority of investors in the investors meeting,” added SSM. – Focus Malaysia