A new Purchase Order was issued and must be completed in a month time. The earlier P.O invoices billed are not collected yet hence shortage of money to perform the new p.o. To ensure no distruption in fabrication, a ‘Factoring’ facility is used through ‘leasing corporation’; a subsidiary of Bank Pembangunan. ‘Factoring’ facility is only good in order to gain immediate access to the cash owed to the seller by its customers; NOT as a capital to produce material and goods!
(Case A) So here’s what happen. The MD of the company did not inform the shareholders, directors and proceeds to use ‘Company X’ to obtain factoring loan in form of LC ‘letter of credit’. The MD forges all documentation and invoices, passing Company X as an supplier. When such manipulation is discovered, questioned is asked and no one seems to have a clue of what is happening. Office in KL are claimed ‘broken’ into and all computer equipment, documents and records are missing; when the directors and shareholders asked for a financial status.
Work progression is still ongoing in the factory for that month as order must be completed, but toward the end production came to a cease as there just isn’t any money left to roll~. The loan from the leasing corporation have now runs in hundred of thousands in penalties and liabities over millions. An emergency meeting is called, the MD and the financial manager of the company is no where to be found. Decision is made and the company contract was taken over by a certain influencial person (DH) at no cost; total handover. In returns (DH) agrees to settle the loan from the leasing corporation and all the owing suppliers. Factory, machinery and workers are ‘rented’ by (DH) to fabricate and continue the production..
The MD and the finanacial manager has disappear since then, not listenning to phone calls or willingly come out to see the directors and shareholders. A Police report is filed against them for fund manpulation, CBT and fraudgery of documentations.
As for the kid~ haha... life's great isn't it?
more to come...
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