THE meeting was held to pacify members.
Instead, a state affiliate went on record to ask for the resignation of Table Tennis Association of Malaysia (TTAM) officials responsible for giving out RM8 million worth of loans to two developers last year.
Penang Table Tennis Association president Datuk Michael Tiah sent a letter to the national body saying “it appeared there was a serious breach of good corporate governance and violation of the association’s constitution”.
The executive committee meeting at TTAM’s office in Bukit Jalil on May 20, which Tiah was elected to chair, discussed the two loans of RM4 million each given out to Ekal Jaya Sdn Bhd and Iktimewah Land Sdn Bhd.
He highlighted four points:
- TTAM may have violated the Moneylenders Act, adding even though the management was working with lawyers, “there are footprints everywhere”.
- The national body’s constitution only allows the president, secretary and treasurer to be the bank signatories and that the secretary Chan Foong Keong, “being in TTAM for many years, should explain why the deputy president was made a bank signatory, against the Constitution”.
- Although the constitution states all investments above RM500,000 must be approved by the general meeting, payments for the loans were not.
- The loans given out were not properly collateralised and no valuation reports were sighted despite the loans being given out in March and December 2017.
“Furthermore, the management informed a new loan agreement is being drafted. This is like putting the cart before the horse,” Tiah said in his letter.
He added steps should be taken to restore public perception following the “negative publicity” surrounding the fiasco.
“In this respect, a well-worded statement should be announced by TTAM as soon as possible.
“Furthermore, those responsible for this fiasco should be asked to resign gracefully, appoint a new team to take over the management of TTAM and ensure a smooth handing over.”
Tiah, when contacted, refused to comment.
The matter was first reported by Foul! on May 6, 2018.
It was then reported TTAM’s financial statement (ended March 31, 2018) presented during the 6th exco meeting on April 21 saw RM8 million loans granted to Ekal Jaya and Iktimewah (RM4 million each).
The loans come with one per cent interest per month.
TTAM’s legal representative Ankit Sanghvi, had after last Sunday’s executive committee meeting, told Twentytwo13: “As it stands, it is a breach of the law. We are now taking steps to rectify the situation by terminating the contracts.
“The association has been in talks with the two companies and they have agreed to return the money. As for the interest gained, we are finding ways to convert that into a sponsorship deal so the association will not be required to return the money. This is still being negotiated with the parties involved,” added Ankit.
The Sports Commissioner’s Office has remained tight-lipped over the saga, saying since a police report was lodged on the matter, “any comments will be considered as interfering with the investigation”.