YU KUAN HUAT Lot 48632 YNH Property Bhd
YNH Lot 48632 RM239.5 million Scandal - Yu Kuan Huat

23 April, 2023 – Kuala Lumpur, Malaysia – A shocking RM 239.5 million deposit seemingly disappeared amid a web of hidden transactions and potential conflicts of interest involving close family members of the Yu Syndicate, connecting to another bombshell joint venture scandal involving YNH Property Berhad (KLSE:YNHPROP) and Rapid Synergy Berhad (KLSE:RAPID).

In the annual report of YNH Property Berhad, land plot HSD 47941, Lot 48632, a bit more than 6 acres, has been noted as a joint venture development. However, no construction has started on the site in over 20 years. Rapid Synergy Berhad and Supreme Concept Sdn Bhd, a business owned by Ho Swee Ming and Ng Bak Nai, former directors of YNH and relatives of the Yu Brothers, entered into a joint venture agreement in January 2002. In July 2003, the joint venture was abandoned.

A title check reveals that Imbuhan Sempurna Sdn Bhd, which still owns the property today, acquired possession of the site in November 2002. Between 2003 and 2016, the property was used as collateral for bank loans of up to RM 50 million, with Kar Sin Bhd, a wholly-owned subsidiary of YNH, replacing Yu Kuan Chon (YKC) and Yu Kuan Huat (YKH) and their spouses as the beneficiaries.

It was recently uncovered that, at least as of 2009, YNH Property had been using the property as security for loans from funding sources. YNH effectively treated the property as its own while dubious business dealings between the Yu family and the Yu Syndicate were occurring behind the scenes. Only in the most recent declaration was YNH compelled to disclose that RM 239.5 million had been diverted into a different “joint venture” in order to provide future earnings to the members of the YU Syndicate.

Up until December 2016, Yu Chon Lan and Yu Choon Sing—sisters of YKC and YKH—owned Imbuhan Sempurna. They were replaced by Yu Teong Wei, first cousin, and Lau Sheng Ming, both known to be proxies for the YKC/YKH. On October 10, 2020, Yu Teong Wei left his position as a director of the business along with numerous other proxy firms.

Zero deposits are visible in Imbuhan Sempurna’s accounts, and Supreme Concept has never submitted an audited report. Another proxy firm owned by Lau Sheng Ming and Yu Teong Wei, Great Wall Park Sdn Bhd, is most likely the recipient of the RM 239.5 million deposit.

The public record reveals serious conflicts of interest involving numerous family members and flagrant transgressions of Bursa Malaysia policies, with no market disclosures. At the expense of minority shareholders, the deposit recipient receives the RM 239.5 million and enjoys it without any checks or balances.

According to filings, there are close family members who are actively involved in the scandal, including Yu Chon Lan, a corporate attorney who manages all real estate deals for YNH.
Those responsible for these offences may be subject to harsh legal penalties, such as fines, incarceration, civil actions, and regulatory sanctions, if they are proven guilty. To decide the best line of action and look at relevant party AGM approvals, authorities are anticipated to open a thorough inquiry into the situation.

As a legal expert would say, it is crucial to emphasize that an in-depth investigation would be necessary to fully determine the extent of the wrongdoings and to gather sufficient evidence to support any legal actions against the individuals and companies involved. If the allegations are proven to be true, it is essential that the relevant authorities take appropriate actions to hold the wrongdoers accountable, protect the interests of shareholders, and uphold the integrity of the Malaysian corporate and financial sectors.

This is a part of a series of articles dedicated to the Joint Venture Deposits paid out in the past 20 years by the YU Brothers to family and connected persons. Stay tuned for more as we investigate the YU Syndicate’s world of Fraud and Fortune as we follow the money!

Merry Gel Sigui

A multimedia journalist focused on producing articles about controversial global issues specifically on business, economy, politics, and technology. A strong believer in freedom of the press and exposing the wrong. only through engagement and communications can we as humans evolve. An accredited member of a leading local broadcast media organization.