Author Topic: What AMMB Board and Management scare of?  (Read 82 times)

Offline investlogic

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What AMMB Board and Management scare of?
« on: September 02, 2021, 01:24:07 PM »
This morning AGM has demonstrated a serious corporate governance issue in the bank. This probably is also what they scare of… the big red flag!
 :sweat: :sweat: :sweat:

(1) To start, there are many shareholders emailed in their pre-AGM questions accordingly to their administrative guidelines, however, all are being filtered. Only big shots, like PNB, MSWG and KWAP, questions are presented and answered. All other minority shareholders pre-AGM questions are ignored. This suggested that AMMB are treating shareholders differently, only entertain big funds, while ignoring all other shareholders, especially retail investors.

(2) Then during live questions, the board and management had also only picked simple questions to answer, while filtered all the difficult questions.

(3) Moderator also blatantly declare no other questions were received to quickly end the Q&A session, but instead, there are many questioned posted but unanswered.

I presume some of these questions had touched their nerves that they try to avoid. They probably scare to face these questions. Let's take a look at some of these filtered questions:

(1) Our bank pays RM2.83 billion to MoF to settle the misconduct case in the 1MDB bond. Understand that this amount represented more than 50% of the bond total value, and more than 5 times the fee that Ambank received. Considering that the money raised is not siphoned by Ambank, why do we need to pay such a big amount to cover the 1MDB loss? What is the rationale for reaching this amount?

(2) The 1MDB settlement amount of RM2.83 billion is a great detriment to our company, it is equivalent to more than 30% to market cap, more than 14% to total equity and almost 3 years of group core earnings. This transaction is obviously material in terms of amount and nature, why does this transaction does not require shareholder approval?

(3) The media reported that our the bank helped middlemen to gain in 1MDB bond fundraising process, which seems like a type of kickback.
a) Are these types of kickback to middlemen common in our bank, and in the banking industry?
b) Are these types of practices legal?
c) Are the board at that time, aware of these arrangements?
d) If it is illegal, why none of the previous bank officers who were involved, and current/previous board members who approved these transactions are held responsible?
e) Are AMMB paying this big sum to MoF to protect this group of people from being charged, but in the expenses of other shareholders?
f) Do our board planning to crawl back the loss from executives and board members who were responsible?

(4) FY2021 reported big one-off exceptional items, such as 1MDB settlement, goodwill impairment and REIT impairment, which total RM4.77 billion. This would significantly reduce the total equity of our bank, and hence artificially raise the ROE.  Will the KPI of management be adjusted accordingly? If so, please share the before and after KPI for our management.

Shareholders who posted difficult questions during the AGM were not trying to make them look bad, instead are trying to express their concerns, and at the same time, give BOD and management an opportunity to explain/defend themselves. However, it appears that our BOD and management are too frightened to answer these questions? Or, their IR department has higher power that can stop the questions to them? Whatever it is, this illustrated serious corporate governance and transparency issues.

Since shareholders questions were being filtered by the BOD and management in the AGM, let us all post these questions here, so that we can have a better picture of areas which are possible a big red flag.

Offline Han1xnah

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Re: What AMMB Board and Management scare of?
« Reply #1 on: September 08, 2021, 09:19:41 PM »
hi everyone!!

nice to meet you all, guys​​​​​​​ 8) 8) 8)

 
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