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Pan Electric Crisis

scroobal

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I saw this comment and had a good laugh.

Despite the name "Pan Electric" attributed to the crisis, it was not one penny stock company going under that people were worried about. TKS despite being the largest shareholder was was not even a director or a office holder much less a captain of the company. The authorities did not intervene where the company was concerned. Standard Chartered Bank loan was defaulted on and a rights issue was proposed to reduce debts. The accountants doing due diligence for the rights issue found that the company was insolvent and owed 35 banks twice the amount of its market capitalisation.

The ship sank by courtesy of the 35 banks and only much later did they realise TKS's complicity.TKS was arrested after the company went into receivership.

The real crisis was the impending collapse of the stock broking industry which had 8 out of 12 stockbroking firms becoming insolvent. 5 eventually collapsed.


in pan el's case, it was a floating ship. they seized the captain and a captainless ship shipwrecked on the rocks. nevermind what's cooking in the ship. the authorities could have given more thought to the passengers and crew still on the ship. the whole saga could have been executed behind the scenes with deliberate docking and evacuation of the ship than sudden heli plucking of the captain out at sea. the fault did not lie with tks alone. you're obsessed with the wreck and devastation while forgetting the whole disaster could have been prevented.
 

eatshitndie

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you're correct that that the ship was already sinking, and the authorities plucked tks later. it sank because of unsettled forward contracts, but up to dec 85, tks gave a sgd20m loan to the company so it could continue to be traded. he controlled sigma international which had a sizable stake in pan el. that should give him a director seat. peter tham and tkl, the other directors, were the guilty ones who engaged in fictitious share trades. they got their just desserts.
 

lee6100

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The real crisis was the impending collapse of the stock broking industry which had 8 out of 12 stockbroking firms becoming insolvent. 5 eventually collapsed.

Associated Asian Securities, Lin Securities, Lyall & Evatt, Tsang & Ong, and City Securities, J Ballas, KH Lim and Cathay Securities.

J Ballas was the first to access the lifeboat fund.
 
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halsey02

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Associated Asian Securities, Lin Securities, Lyall & Evatt, E G Tan and City Securities, J Ballas, KH Lim and Cathay Securities.

J Ballas was the first to access the lifeboat fund.

Thank you for reminding me the names of these stock broking houses, whom I have already forgotten, there was Ong & Company too, right? Like I had said before, I still cannot forget the mountain of Pan El Scrips in the locked storeroom, whose access was by a key, held by a person of senior authority in the company. They are keeping waste papers under lock & key, but these waste papers, were once money!:biggrin:
 
M

Mdm Tang

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Tan Kok Liang



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http://books.google.com.sg/books/about/Tan_Kok_Liang.html?id=mLI-bwAACAAJ&redir_esc=y

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Tan Kok Liang was an accountant and the financial director of Pan-Electric Industries Pan-El. He was also the director of Pan-El's subsidiary Orange Grove Property, the company responsible for making the many forward share purchase contracts that led to Pan-El's collapse in 1985. Tan was also a director of Pan El's largest shareholder, Growth Industrial, and its subsidiary Trans Eastern. During the trial of Tan Koon Swan, the prosecution alleged that the two Tans, who are unrelated, colluded to artificially raise the price of securities of Grand United Holdings, Supreme Corporation, Ambassador Hotel, and Growth Industrial Holdings in order to facilitate financing for each company.
 
M

Mdm Tang

Guest
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KUALA LUMPUR: In a shocking turn of events, Glenn Knight, the former prosecutor of the Pan-Electric case that destroyed the political and corporate career of ex-MCA president Tan Koon Swan, said the latter was wrongly convicted and the Singapore courts and several high-ranking judges involved in the case had erred in sending him to jail.

Knight, in a book that was released recently, said it first dawned upon him in 1996 that Tan was wrongfully prosecuted after the conclusion of a criminal breach of trust (CBT) case that was presided by then Chief Justice of Singapore Yong Pung How.

In his conclusion on a CBT case that was similar to the Pan-Electric case, Yong said that Knight had charged the founder of Multi-Purpose Holdings Bhd (MPHB) — the powerful investment arm of MCA in the 1980s — under the wrong section of the law.

Yong explained that it was wrong to conclude anyone had stolen money from the company if the wrong charge had been used to prosecute the person in the first place.

“The judgment meant that Koon Swan was wrongfully convicted and he was technically an innocent man. As he [Chief Justice Yong] was considered a good judge, everyone had to accept that Koon Swan had been wrongly convicted and I was forced to accept that I was wrong too.

I too had to accept that if I had erred, the judges involved in the Koon Swan case were also wrong. The judgment shattered my belief in our legal system,” Knight wrote in his book Glenn Knight The Prosecutor, which was released recently.

Tan was charged in December 1985 after the collapse of the Pan-Electric group which resulted in the stock exchanges at both ends of the Causeway to be suspended for three days. He was slapped with 15 charges, from share manipulation to CBT. The high-profile case saw a speedy conclusion only because Tan pleaded guilty to the charges.

Four distinguished judges heard the case in its various stages of appeal, including former chief justice of Singapore Wee Chong Jin. Tan was subsequently convicted and sentenced to two years in Changi Prison.

Tan, when contacted by theedgemalaysia.com, said he had still not decided if he would take any action against the Singapore government following the latest revelation on the Pan-Electric case, which effectively ended his career as MCA president and a position in Corporate Malaysia. “I’m overseas now … I don’t know whether I will do anything about it. It’s very unlikely I will say anything so soon,” he said.

The revelation comes 27 years too late as Tan is now a retired businessman who helps his children to run a property development company. He spends most of his time in Hainan, China, these days where the company has several projects.

After serving his jail term in 1986, Tan, who is married to banker Penny Chang, stayed out of public eye. Before his conviction, he could easily count himself as one of the country’s most influential businessmen and political leaders.

Tun Dr Ling Liong Sik took over the MCA presidency from Tan. It was during Ling’s tenure as president that MPHB, with its vast assets, was disposed to Datuk Lim Thian Kiat.

In his book, Knight said an error in judgment would have been set aside in jurisdictions such as the UK. “But in Singapore, the jurisprudence does not allow for this, although technically Koon Swan could still be pardoned,” he wrote.

On suggestions that he seek a “pardon” from the Singapore president to clear his criminal record, Tan declined to commit to any action. “No, I am not going to say anything.” He also declined to say whether he would sue the Singapore government for compensation for ruining his reputation and his future.

The 68-year-old Knight was the first director of the Commercial Affairs Department of Singapore. Due to its successful prosecution of the Pan-Electric and other cases, Knight was awarded the Public Administration Gold Medal by the Singapore government in 1988.

His illustrious career came to an abrupt end when he himself was convicted in 1991 for using the wrong invoice to purchase a car — an offence under the Corruption Prevention Act. In 1998, he was again tried and convicted for misappropriating money while in office.

Knight was only reinstated as a lawyer in 2007, making him one of only six lawyers to be reinstated into the Law Society of Singapore in its 35-year history.

Knight stated in his book that it was extremely painful for him to discover that the Singapore courts had got it so wrong and dawned upon him that he should apologise to Tan for having him wrongfully convicted.

The former deputy public prosecutor met Tan at a conference in Singapore in 2010 and related to him the conclusion made by Yong in the 1996 CBT case. The news was received with great excitement.

Knight wrote in his book that Tan’s case had a profound effect on him and only time would tell if he had indeed erred so badly in the case.



This article is appeared in The Edge Financial Daily on 11 September, 2012.
 

MightyMouse

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His illustrious career came to an abrupt end when he himself was convicted in 1991 for using the wrong invoice to purchase a car — an offence under the Corruption Prevention Act. In 1998, he was again tried and convicted for misappropriating money while in office.

Knight wrote in his book that Tan’s case had a profound effect on him and only time would tell if he had indeed erred so badly in the case.

One of the reason Glenn Knight fell from grace was the arrest of TKS. At the point of arrest, TKS was less than 2 weeks away from being appointed a member of the Malaysian Cabinet. TKS was deemed to be friendly to Singapore and therefore useful to have as an active cabinet minister.

Unfortunately for TKS, he transited through Singapore Airport at the wrong time. CAD had been working on the case for some time and almost ready to bring him in. However, such arrest needed to be approved by the Minister, which in this instance was LHL (who would not have approved the arrest due to national political interests that is not known to CAD). However, due to the short notice that TKS would transit through Changi Airport, CAD did not managed to reach LHL to approve the arrest. Nonetheless, they went ahead with the arrest without the approval from the top. And once the cat is out of the bag, the rest became history .....
 

lee6100

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Thank you for reminding me the names of these stock broking houses, whom I have already forgotten, there was Ong & Company too, right? Like I had said before, I still cannot forget the mountain of Pan El Scrips in the locked storeroom, whose access was by a key, held by a person of senior authority in the company. They are keeping waste papers under lock & key, but these waste papers, were once money!:biggrin:

Errata: Replace EG Tan with Tsang & Ong.

OngCo, EG Tan, Alliance Securities, Lee & Co., Lim & Tan, and GK Goh escaped insolvency.

The brokers during that time were really raking it in bull markets. After Pan-El, the government got DBS Bank to start DBS Securities, supposedly to spearhead a new era in governance. So much for that because not long after, the MD Jen Shek chuen and Chief dealer Georgie Lee got into trouble and were censured by the then SES and MAS.

And yes, in the days before scripless trading, it was common to find mountains of scrips in stockbrokers' offices. Fire was the greatest fear and they usually had people staying overnight in the premises.
 
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scroobal

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TKS's arrest was sanctioned by Singapore Cabinet and matter was referred to Mahathir. Mahathir personally told TKS to sort it out with the Singapore authorities before any appointment can be made. TKS was stuck. He could not sit down in Malaysia indefinitely.

There has one other Malaysian tycoon who the Malaysians did not agree with Singapore's request and he was not arrested but interviewed in a hotel in a neutral country and asked to pay hefty settlement which he did.

Shortly after the arrest, GK made some silly remarks and landed in hot soup with both sides of the Govt and MCA lodged an official complaint.

What many are not aware is that KL stock exchange was also closed for 3 days and most of the 5,OOO shareholders were Malaysians. After TKS's release, he was charged and jailed in Malaysia and made a bankrupt in Malaysia. The Malaysians badly wanted TKS as much as Singapore because of the damage that he had done.

TKS was elected MCA President 1 week before Pan El defaulted on a major loan and 2 weeks before it went under. Months before that he was sacked by MCA and a power struggle ensued. The parties in Barisan were not pleased and neither was UMNO and a leadership at that time was frowned upon.

Subsequent investigation revealed that TKS owned or controlled 54% of Pan El.






One of the reason Glenn Knight fell from grace was the arrest of TKS. At the point of arrest, TKS was less than 2 weeks away from being appointed a member of the Malaysian Cabinet. TKS was deemed to be friendly to Singapore and therefore useful to have as an active cabinet minister.

Unfortunately for TKS, he transited through Singapore Airport at the wrong time. CAD had been working on the case for some time and almost ready to bring him in. However, such arrest needed to be approved by the Minister, which in this instance was LHL (who would not have approved the arrest due to national political interests that is not known to CAD). However, due to the short notice that TKS would transit through Changi Airport, CAD did not managed to reach LHL to approve the arrest. Nonetheless, they went ahead with the arrest without the approval from the top. And once the cat is out of the bag, the rest became history .....
 
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halsey02

Alfrescian (Inf)
Asset
Errata: Replace EG Tan with Tsang & Ong.

OngCo, EG Tan, Alliance Securities, Lee & Co., Lim & Tan, and GK Goh escaped insolvency.

The brokers during that time were really raking it in bull markets. After Pan-El, the government got DBS Bank to start DBS Securities, supposedly to spearhead a new era in governance. So much for that because not long after, the MD Jen Shek chuen and Chief dealer Georgie Lee got into trouble and were censured by the then SES and MAS.

And yes, in the days before scripless trading, it was common to find mountains of scrips in stockbrokers' offices. Fire was the greatest fear and they usually had people staying overnight in the premises.

I have delivered scrips to KL Clearing House south Malaysia in JB, near to where City square is today...those scrips were worth million of dollars in RM, if I was robbed..I would have to jump into the causeway...looking back I shudder! heh heh heh
 
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scroobal

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The irony was that no one suspected TKS's at all. He was not a director or office holder in Pan El. They actually thought he was like other shareholders the victim. They actually approached him to help with the bailout which TKS readily agreed and the sum of $40 million was to be pumped in. Immediately Tan Koon Swan was regarded by the penny stock punters and by Malaysian Chinese as the white knight riding to rescue a company.

It is only later that they found out that white knight was the one who plundered the company to buy the record number of votes 76% (still the standing record) to get the MCA presidency.

Anyway, GK met TKS at a Christian event and as both were born again christians, they both blamed it on the devil and absolved eqch other of their sins.
 

halsey02

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The irony was that no one suspected TKS's at all. He was not a director or office holder in Pan El. They actually thought he was like other shareholders the victim. They actually approached him to help with the bailout which TKS readily agreed and the sum of $40 million was to be pumped in. Immediately Tan Koon Swan was regarded by the penny stock punters and by Malaysian Chinese as the white knight riding to rescue a company.

It is only later that they found out that white knight was the one who plundered the company to buy the record number of votes 76% (still the standing record) to get the MCA presidency.

Anyway, GK met TKS at a Christian event and as both were born again christians, they both blamed it on the devil and absolved eqch other of their sins.

They have made peace with God, we just move on, what can one do now? can't go back in time & stop the events that had started. At least, this is better, than "ONE" who threaten to bring KLSE to the International Court Of Juctice over CLOB plus what happened to the head of SES at that time, just faded quietly into the 'woodwork'.!!??

At least these two, became born again Christians, only God knows, better than those who never said sorry to those who lost their retirement money & some more than their pants..when Dr. M & KLSE pulled the plug! Who is to be bless, who is to be blame, what do you think?
 
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