Perak Corp Addresses Damaging Reports On Its Financials And Mistreatment Of Creditors

Perak Corp has been flagged by a DAP Lawmaker on its alleged attempt to cheat creditors and its declaration of assets which is missing a large chunk of value.

Referring to online reports where these allegations were first published, Perak Corp has issued a statement to Bursa to clear the misinformation directed at the group.

On the allegation that Perak Corp is having a subsidiary company and had issued two different sets of accounts dated on the same day showing two different financial positions. The DAP lawmaker had claimed that the quarterly report ended on June 30, 2020 for Perak Corp Group shows total non-current assets of RM404,183,000 and current assets of RM367,248,000 amounting to total assets of RM771,431,000. His explanatory notes further states that the non-current assets declared were RM99,220,199 and current assets RM60,457,014 which gives a total of RM159,677,213. This is where prompted the DAP lawmaker to ask “Why are the total assets declared in the scheme of arrangement so much lower than the quarterly report which is RM611.75 million or 79.3 percent lower?”

To this difference in financial holdings, Perak Corp clarified that the Q2 June 2020 Quarterly Report was prepared on a consolidation scenario (Group basis) which it says is in line with accounting standards. The total assets of RM771 million stated in the Q2 June 2020 Quarterly Report include assets of all subsidiaries companies under Perak Corp Group including PCB Development Sdn Bhd (“PCB Development”). It further adds that the management accounts illustrated in the Explanatory Statement dated 26 March 2021 were prepared at the company level (i.e. Perak Corp), where the total assets of approximately RM159 million represent the assets of Perak Corp.

Perak Corp further emphasised that the statement “Perak Corporation Berhad Development having two different sets of accounts” is inaccurate as there is no such company as “Perak Corporation Berhad Development” as alleged. The subsidiary of Perak Corp is PCB Development instead. Further, the figures quoted by the lawmaker refer to Perak Corp Group’s financial position and the Perak Corp’s management account in the scheme of arrangement at the company level. The figures quoted were also not of PCB Development as claimed.

On the allegation of cheating its creditors and not treating them fairly, the state-owned company states that the scheme of arrangement of Perak Corp and PCB Development was carried out in accordance with Sections 366 and 369 of the Companies Act, 2016, where sufficient notice of twenty-three clear days has been given to the Scheme Creditors to evaluate and vote on the scheme of arrangement.

The Scheme Creditors comprise of non-financial institutions creditors and nonfinancial institution creditors of PCB Development, that are owed to or may potentially have a claim against Perak Corp and PCB Development up to 30 June 2020.

It said the scheme of arrangement was approved by more than 75% of the present and voting Scheme Creditors at the Court Convened Creditors’ Meeting held on 19 April 2021. The scheme of arrangement was subsequently sanctioned by the High Court of Malaya on 7 May 2021, and announced by Perak Corp on 11 May 2021.

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