19-10-2023 (KUALA LUMPUR) Controversies have swirled around companies connected to the co-founder of the now-grounded carrier MYAirline, even before its launch, with a series of financial irregularities taking center stage.
A mere two months prior to the commencement of operations of the budget airline earlier this year in January, a company owned by Datuk Allan Goh Hwan Hua and his wife Datin Neow Ean Lee found themselves in hot water. Bank Negara Malaysia reprimanded them and imposed a hefty RM50 million fine for engaging in unlawful deposit-taking activities.
The troubles extended to i-Serve Online Mall, an e-commerce company, and six other affiliated companies that were similarly fined RM50 million in October the previous year, also for illegal deposit-taking and money laundering.
Between 2018 and 2021, these companies were embroiled in illegal deposit-taking and money laundering activities, contravening the laws under the Financial Services Act and the Anti-Money Laundering, Anti-Terrorism Financing, and Proceeds of Unlawful Activities Act 2001. These fines were paid a few weeks after the penalties were imposed.
The saga unfolded further when Bank Negara conducted raids on 22 premises associated with i-Serve in Selangor and Kuala Lumpur in November. During the operation, cash amounting to almost RM120 million was frozen in 45 bank accounts belonging to the company. Subsequently, i-Serve managed to secure leave from the High Court to initiate a judicial review aimed at challenging the account freezes. The raids were executed in a joint operation involving the National Anti-Financial Crime Centre, Securities Commission Malaysia, Companies Commission Malaysia (SSM), Malaysian Anti-Corruption Commission, CyberSecurity Malaysia, and the police.
In a separate development in May of this year, Datuk Mohamad Madani Sahari, the former CEO of Malaysia Automotive, Robotics, and Internet of Things Institute (MARii), faced multiple charges of money laundering. One of these charges implicated him in an illegal transaction that involved receiving a payment of RM38,000 from Goh’s company, Trillion Cove Holding.
It’s noteworthy that Trillion Cove Holding happens to be a significant shareholder of MYAirline. An investigation conducted by The Star revealed that Goh’s 26-year-old son, Sean Goh Tze Han, is also counted among the airline’s shareholders.
While Goh himself holds less than 1% of the stake, two companies associated with him, namely Trillion Cove and air transport firm Zillion Wealth Bhd, collectively own nearly 65% of the shares. As of Tuesday, the airline reported substantial losses exceeding RM12.5 million in its financial records.
With MYAirline suddenly ceasing its operations last Thursday, thousands of passengers who had purchased tickets to various destinations are now in limbo, collectively seeking refunds that could tally up to RM22 million. The company has announced its pursuit of a new investor to revitalize its operations and alleviate its financial burdens.
