Babu, Baba, Bibah, Benji along with 6 others are directors and shareholders of Bujang Lapuk Bhd (BLB), a company dealing in the manufacture of printed batik material. Sometime in August 2016, Babu and Baba were delegated the task of negotiating a multi million-dollar contract for the export of printed batik materials to a company in Sweeden. However, the negotiations were apparently unsuccessful as the contract had been awarded to another Malaysian company. Sometime in December 2016, BLB purchased 2 batik printing machines from Doremi Ptd Ltd for RM3 million. The market price of the batik printing machines was only RM1 million. The decision to purchase these machines was made by Benji as the managing director of the company. No approval had been obtained either from the board of directors or from the general meeting.
In April 2017, Benji had approved a loan of RM1 million in favour Bibah who needed the money to send her son overseas for further education. This also was done without the knowledge of the board of directors or from the general meeting. Last month Bibah was declared bankrupt by the court pursuant to an action by one Bibah's creditors.
Later, BLB had discovered that the Malaysian company which was awarded the contract for the manufacture of printed batik material by Swedish Government is a company called Batik Cantik Sdn. Bhd. whose only shareholders are Babu and Baba. It also had been discovered that a sum of RM200,000 had been received by Benji from Doremi Pte Ltd as an incentive for approving the purchase of the 2 batik printing machines for RM3 million.
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