The revelation of a Shady Scheme used to Siphon RM1 Billion from YHN Property Bhd has sent shockwaves across Malaysia, with potential ripple effects impacting the wider region, including Kuala Lumpur. As of January 4, 2023, the news has raised concerns among the Malaysian Public, with the YU Syndicate Directors at the center of the controversy. The YU Syndicate is controlled by YU KUAN CHON and his brother YU KUAN HUAT, who are both Controlling Shareholders and Directors of YNH Property BHD (YNH) (KLSE: YNHPROP (3158)) and its sister company RAPID SYNERGY BHD (RSB), KLSE: RAPID (7765).
These companies are part of a larger group consisting of more than 30 known YU Syndicate companies, which have been identified as puppet Malaysian Public companies. The historical Annual Reports of YNH provide insight into the company’s assets, including a number of properties listed year after year. By analyzing these reports, it becomes clear that the company’s investments in land are significant, with the 2021 Annual Report stating that Included in properties held for development and properties under development of the Group are amounts of RM1,007,510,470 (2020: RM952,227,470) paid in respect of joint venture and turnkey contracts entered into with landowners for development work which has yet to commence.
Unregulated and Unreported Transactions
The land cost is subject to the agreed entitlement provided in the contract with the joint venture partners or landowners, which means that YNH has put deposits in cash of more than RM1 Billion into 18 dead or frozen projects. This money is unregulated, unreported, and not controlled by the YNH shareholders, but instead is controlled by the YU Syndicate (YNH controlling shareholders and Directors) who use this money unchecked. The majority of the 18 dead land deals are all Joint Ventured with companies set up by the YU Syndicate and located in Perak at the same address located inside the YNH Construction Sdn Bhd complex and using known YU Syndicate Directors.
The lack of transparency and oversight in these transactions has raised concerns among the Malaysian Public, with many questioning the role of the YU Syndicate in controlling these funds. As the news continues to unfold, it is likely that there will be further investigations into the activities of the YU Syndicate and its affiliated companies, including YNH Property Bhd and RAPID SYNERGY BHD. The YU Syndicate’s use of Shady Scheme to Siphon RM1 Billion from YHN Property Bhd has significant implications for the company’s shareholders and the wider community, and it is essential that those responsible are held accountable.
Regulatory Framework and Auditor’s Notes
The new FRS regulations have forced YNH to clarify the status, disposition, and investments made in land, providing greater transparency into the company’s activities. However, the complexity of auditor’s notes can make it difficult to interpret the company’s financial reports. In the case of YNH, Property Assets are now listed in 3 categories, with the third category Auditor note 8 item (v) of the 2021 Annual Report providing insight into the company’s joint venture and turnkey contracts. The fact that YNH has put deposits in cash of more than RM1 Billion into 18 dead or frozen projects raises questions about the company’s financial management and the role of the YU Syndicate in controlling these funds.
Next Steps and Investigations
As the investigation into the YU Syndicate’s activities continues, it is likely that there will be further revelations about the company’s use of Shady Scheme to Siphon RM1 Billion from YHN Property Bhd. The Malaysian Public will be watching closely to see how the authorities respond to these allegations and whether those responsible will be held accountable. In the coming weeks and months, it is essential that the public remains vigilant and continues to demand transparency and accountability from companies like YNH Property Bhd and RAPID SYNERGY BHD. If you have information about the YU Syndicate, YHN, RAPID, or other related parties mentioned in this article, you can contact us via the contact us links or by email, and we will go to great lengths to protect our sources.
Looking ahead, it will be important to watch for any updates on the investigation into the YU Syndicate’s activities and the use of Shady Scheme to Siphon RM1 Billion from YHN Property Bhd. The outcome of this investigation will have significant implications for the company’s shareholders, the Malaysian Public, and the wider region, including Kuala Lumpur. As the situation continues to unfold, it is essential that the public remains informed and engaged, demanding transparency and accountability from companies like YNH Property Bhd and RAPID SYNERGY BHD. What to watch next will be the response of the authorities to these allegations and the actions taken to hold those responsible accountable, as well as any further revelations about the YU Syndicate’s activities and their impact on the Malaysian Public and the wider region.
