26 June 2023 – Kuala Lumpur, Malaysia; In an explosive development that has sent shockwaves through the Malaysian corporate world, a high-level source close to the matter has leaked a whistleblower report and critical documents to reporters, exposing what appears to be a massive corporate scandal involving Tunku Dato’ Yaacob Khyra (TY), a member of the Negeri Sembilan royal family, the controlling shareholder of KNM Group Berhad and a director of MAA Group Berhad.
The leaked documents sent to various news outlets (available for download below), dated 19th June 2023, paint a picture of alleged deception, betrayal, and high-stakes corporate intrigue that has reportedly pushed FBM Hudson Italiana, a KNM Group Asset, to the precipice of financial ruin. The whistleblower report accuses TY of orchestrating a web of fraudulent misrepresentation and severe breaches of fiduciary duties, leaving creditors, shareholders, and stakeholders reeling in its wake.
According to the bombshell report, TY is accused of single-handedly derailing a critical Share Sale & Purchase Agreement dated 23 May 2022, effectively torpedoing a deal that was already completed and awaiting payment. The report alleges that this decision was made in the shadows, without the necessary approvals or disclosures, flagrantly violating the Malaysian Companies Act 2016.
But the plot thickens. TY is also accused of reneging on a financial assurance guarantee that MAA Group Berhad had issued, promising to inject a staggering sum of €5 million or more into FBM if the “BORSIG Disposal” did not occur. This guarantee was seen as a lifeline for FBM, and TY’s refusal to honor it has been branded as a shocking betrayal and an act of fraudulent misrepresentation.
The leaked documents suggest that TY’s actions were not just a breach of trust but potentially criminal. Under the Malaysian Companies Act 2016, directors are required to act in the best interests of the company and avoid conflicts of interest. TY’s alleged refusal to honor the guarantee and his failure to make appropriate announcements regarding these significant corporate decisions could be seen as a violation of these Listing Requirements.
Furthermore, the report alleges fraudulent inducement, which involves causing damage to another party through deceit or false promises, a punishable offense under Malaysian Penal Code Section 415.
The whistleblower report, now in the hands of reporters, is a clarion call for justice. It urges FBM Management and authorized persons to enforce the Letter of Assurance and MAA to fulfill its obligations to prevent further detrimental actions. The report also serves as a warning shot to the Board of Directors of potential repercussions from shareholders for any losses incurred due to these violations.
As this scandal continues to unfold, the corporate world waits with bated breath for the next chapter in what is shaping up to be one of the most sensational corporate dramas in recent memory.
Stay tuned as we continue to dig deeper into this developing story.