Kuala Lumpur: KNM Group Berhad Executive Co-chairman Gan Siew Liat with Husband, the former KNM Group CEO charged with Insider Trading along with Daughter Sara Lee Mei Ching the General manager of Impress Ethanol Co. Ltd. turned a promising Thailand Ethanol business into a loss-making financial disaster for KNM.
Although the Thailand ethanol industry is flourishing, KNM’s Impress Ethanol group (IEL) has lost more than RM 20 million in the past period according to the latest financial report. Further reports that the THB2.7 billion (RM350 million) bond issued and guaranteed by its 72% owner KNM Group Berhad to build and fund Phase 2 facility expansion is due and payable later this year which relied on revenues from the non-existent Ethanol operations.
The THB2.7 billion Impress Ethanol’s Phase 2 expansion has not occurred with almost no work completed in the construction process. According to sources close to the situation, most of the equipment needed to begin construction is still not procured or has been left to rot in storage at the port of entry. So where is the THB2.7 Billion
We have recently learned that Gan Siew Liat, KNM’s Director and Executive Co-Chairman of the Board, appointer her Daughter Sara lee (recently graduated with a degree in hospitality) with no work experience or knowledge of chemical engineering or construction as the Managing Director of the company.
According to records, Gan Siew Liat, KNM’s Director and mother of Sara Lee Mei Ching granted her daughter 30 million ESOS shares as a reward for leading the IEL project into disaster and loosing RM20 million in the last reporting period.
Shareholders are angry that an unqualified person, daughter of Gan Siew Liat, would be put in charge of a group of companies responsible for the income of KNM Group. Normally a company would have hired an experienced Chemical plant Manager to lead the charge and run such a potentially dangerous ethanol process plant. These questions the experience of Gan Siew Liat who has elevated herself to Executive Vice Chairman in the vacuum left by her husband who was forced to resign in sham with charges of Insider Trading.
Non-controlling Shareholders have had enough according to many blogs and angry employees. The upcoming AGM scheduled on the 29th of June 2021 to approve the reappointment of directors, will be immediately followed by an EGM to approve the dilution of the KNM shareholders by as much as 30% in favor of the Lee Family.
Shareholders have rallied together to put a stop to the Lee family once and for all. Reports of record registrations to vote in these 2 events will likely end the Lee family hold on the group of companies.
To register to vote in the upcoming AGM and EGM, refer to the KNM circular for each meeting and register your interest by 25 June 2021. Be sure to register independently online for the meeting at the industry website via the independent organization boardroomlimited.my.