Maika shareholders accuse Gnanalingam, G-Team Resources in affidavit

Maika shareholders accuse Gnanalingam, G-Team Resources in affidavit

KUALA LUMPUR: An affidavit have been filed by three plaintiffs against a total of six defendants including a company over alleged wrongdoings and conflict of in Maika Holdings.

The plaintiffs are Maika Holdings shareholders – Datuk S Marathamuthu, R Alameloo and V Elango.

The defendants are made up of four individuals and two companies:- Tan Sri G Gnanalingam, Tan Sri S Kuna, T Arasu, A Ramesh, G-Team Resources and Maika Holdings.

Arasu and Ramesh are the liquidators of Maika Holdings.

Maika Holdings was the business outfit of MIC as the then party sought to boost the economic standings of the Indian community. Its cash cow was Oriental Capital Assurance Berhad, OCAB, an insurance company. It also two parcels of land in Kuala Langat – Tumbok Estate – measuring up to 3840 acres.

At its inception in the 1980s, Maika Holdings raised RM106 million from 66,400 shareholders who were mostly from the lower income group.

However, over the years, Maika Holdings have not made progress resulting in it being taken over by G – Team Resources who paid Maika Holdings shareholders RM 0.80 for every ringgit invested by the investors in 2010.

The plaintiffs questioned the rationale of Maika Holdings in accepting the offer of RM0.80 for every ringgit invested as compared to Salcon Holdings offer of RM1.75 per share in 2007 and RM2.00 per share from Usaha Tegas Sdn Bhd the following year.

The disposal of 77.92% stake in OCAB by G – Team Resources and Maika Holdings to Tune Ins Holdings was also raised since Gnanalingam’s brother in law, Ng Soon Lai was appointed director of OCAB a year before it was disposed.

Despite making profits from 2009 to 2011, OCAB did not pay dividends to its shareholders. This was used as grounds to accuse G-Team Resources, Gnanalingam and Kuna of OCAB sale manipulation.

Marathamuthu also claimed that after the offer of RM0.80 per share, G Team Resources retracted the winding up of Maika Holdings to facilitate a payment amounting to RM145, 753, 073.28 from Tune to Maika Holdings.

The payment enabled Tune to have a stake in OCAB.

Maika Holdings meanwhile repurchased 93.08% shares from G-Team Resources via direct payments to Pembinaan Redzai Sdn Bhd which is owned by Gnanalingam.

Gnanalingam and two other defendents are also accused of oppression as the OCAB were sold under market value despite recording profits.

Questions were also raised over the missing amount of RM144.2 million from Maika Holdings. The amount is derived from the sale of Tumbok Estate land valued at RM28.4 million and OCAB that was disposed for RM145.8 million. Maika Holdings received 174.2 million and had liabilities amounting to RM30 million.

Questions were also raised on the motive of listing OCAB in the stock exchange by Gnanalingam’s companies.

He has the majority stake in G Team Resources, Gryss Holdings, Redzai, Westport, Tune Insurance and Maika Holdings.

The liquidators were accused of breaching professional duty.

Tags assigned to this article:
G GnanalingamG-Team Resourcesmaika Holdings