Resign or be fired, PCB board told

Shocking amount of debt uncovered in auditor’s report, says Nga

IPOH: All board members on Perak Corp Bhd have been told to resign immediately or be sacked.

Perak DAP chairman Nga Kor Ming said the board members had failed miserably to manage PCB, a listed subsidiary under the state agency Perak State Development Corp (PKNP).

According to a report received by Bursa Malaysia from PCB’s external auditor Ernst & Young, PCB’s current liabilities of RM340.6mil for financial year ended 2017 has exceeded its current assets by RM158.5mil and its market capitalisation at RM88mil.

“The amount of debt is shocking. It shows how incapable the board members have been.

“The board members, who are current and former Barisan Nasional state representatives, should resign immediately with dignity before they’re sacked,’’ Nga said here yesterday.

In a statement of material uncertainty over PCB’s ability to function, the independent auditor stated that PCB had said it would dispose of certain land for cash to meet any payment obligation.

PCB also said it would continue negotiations with banks to restruc- ture terms of the syndicated loan, rely on its ultimate holding corporation (which is the Perak state government) to provide financial assistance, and focus on cost savings and stringent cash flow management to remain competitive.

“PCB’s answers are another shock to us.

“As a listed state subsidiary, its ultimate objective should be bringing revenue by declaring dividend for the state coffers.

“But now it is the other way round.

“Why should the people’s money be used to clean up their mess? This is unacceptable,” Nga said, adding that the Perak government reserved the right to sack them by calling an annual general meeting if they chose to hang on.

The Teluk Intan MP also called on the Malaysian Anti-Corruption Commission to investigate PCB for any wrongdoing because it was “irregular and unbelievable for a company to incur such huge losses that exceed its own asset and market value”.

Kepayang assemblyman Dr Ko Chung Sen, who was also present, questioned the reason behind PCB’s investment in a football club and the Movie Animation Park Studios (MAPS) that were not at all profitable.

He pointed out that PCB’s wholly owned subsidiary, PCB Development Sdn Bhd, raised its share to become a major shareholder with a 51% stake in Animation Theme Park Sdn Bhd, the developer and operator of MAPS.

Asked if MAPS might be closed, Nga said the administration would focus on stopping the losses first.

When contacted, PCB chief executive officer Datuk Aminuddin Md Desa declined to comment.

As a listed state subsidiary, its ultimate objective should be bringing revenue by declaring dividend for the state coffers. But now it is the other way round. Nga Kor Ming