Breaking News: Kuala Lumpur, Malaysia, March 23, 2023 – Malaysian property developer YNH Property Bhd (KLSE:YNHPROP (3158)) is currently in the spotlight over an alleged embezzlement scandal involving more than MYR 20 million in a dubious joint venture deal. YNH Investor Relations Manager Chan Weng Fui, YNH General Manager Ngio Hua Jian, and Ngio Yen Lim, father and connected person to Ngio Hua Jian, shareholder and director of several companies, have been implicated in the scandal.
Genius More Sdn Bhd, a company established in September 2012, was purchased by Chan Weng Fui and Ngio Yen Lim in October 2012. The company headquarters is located at a small, inconspicuous shop lot in Perak, raising suspicions about its legitimacy.
Under the Guise of a Joint Venture, YNH Property Bhd allegedly transferred MYR 29.5 million to Genius More Sdn Bhd, a portion of which was used to purchase 76.72 acres of land in Kuala Pilah, Negeri Sembilan. The rest of the funds (MYR 20.1 million) were loaned to one of the Genius Directors. In the 2014 Audited report of the company, the Directors wrote off the loan to the director as bad debt.
Despite the property remaining undeveloped for ten years, the YNH Joint Venture Deposit mysteriously increased from MYR 29.5 million to MYR 65.5 million in the 2022 YNH Annual Report. That is an additional MYR 36 million dumped into a project that YNH claims has no intentions of developing.
Regulatory violations have also been uncovered, including a lack of proper announcements or disclosures for the joint venture, the absence of a mandatory disclosure for the MYR 29.5 million business transaction between YNH properties and its employees, and inconsistencies in the company’s annual reports.
Additionally, MYR 20 million in unaccounted funds raises concerns about potential tax evasion and money laundering. Questions have been raised about the legality of directors loaning money to themselves with no intention of repayment to YNH Property who funded the recent increase of MYR 36 million from proceeds of a recently floated YNH Bond.
This scandal is just one example of the alleged misappropriation of public funds by YNH Property Bhd and Genius More Sdn Bhd directors, which has serious implications in both criminal and commercial law. Local Malaysian media and shareholders are urged to investigate these allegations further and hold those involved accountable.
This article is based on publicly available documents and annual reports, which have been legally signed off by auditors and directors as official statements. More stories regarding the questionable financial activities of YNH Property Bhd are expected to be uncovered soon.