I was forced to sell off my company, says Deepak

Businessperson Deepak Jaikishan today admitted that he has sold his estranged company Astacanggih Sdn Bhd for RM30 million to a Defence Ministry agency, claiming that he was forced into the deal.

He said the deal was only to cover the money he had spent in a land deal with Awan Megah (M) Sdn Bhd that turned sour, and had grudgingly gone through with it despite being denied the lands promised to him.

“It is true that my shareholders and me have sold our shares in Asta Canggih for RM30 million which is our actual cost price of RM13 million for Raja Ropiaah, RM8 million in political contributions, RM7 million of financial costs and RM2 million in legal and miscellaneous costs.

“This was an ultimatum that was forced upon us,” he said in a text message today, but did not mention names.
The statement today comes after Boustead Holding Bhd, the investment vehicle of Lembaga Tabung Angkatan Tentera (LTAT), an agency under the Defence Ministry, announced on Bursa Malaysia that it will be acquiring an 80 percent stake in Astacanggih Sdn Bhd, which was owned by Deepak.
Abrupt move to withdraw lawsuit
Boustead Holdings Bhd, which purchased the stake through its wholly-owned subsidiary Bakti Wira Development Sdn Bhd, said it will also acquire 80.94 hectares of freehold land in Klang from Awan Megah (M) Sdn Bhd for RM130 million.

This coincided with Deepak’s abrupt move to withdraw his lawsuit against Selangor Umno Wanita chief Raja Ropiaah Abdullah and her company Awan Megah (M) Sdn Bhd, yesterday for the same piece of land.

“The irony is that Raja Ropiaah who ‘stole’ the land from us was paid RM130 million, guess that is real power, isn’t it?” he said.
Raja Ropiaah’s company has reportedly denied it.

Awan Megah (M) Sdn Bhd was tasked by the government to construct the National Defence Research Centre (Puspahanas) in Putrajaya for which the Defence Ministry would pay the company RM27 million and 223 acres or 90.24ha of land in Klang worth RM72.5 million.

However, after they were unable to obtain a land bond for the building's construction, the company had engaged Deepak's Astacanggih Sdn Bhd for help.

Deepak had claimed that in this deal, his company Astacanggih Sdn Bhd would issue a RM72.5 million land bond on behalf of Awan Megah (M) Sdn Bhd.

It will also give Awan Megah (M) Sdn Bhd an additional RM23 million, RM13 million of which was already paid, in exchange for 200 acres or 80.94ha of the land which the latter will receive from the Defence Ministry. Awan Megah (M) Sdn Bhd will keep the remaining 23 acres or 9.3ha of the land.

However, the deal became sour after Deepak claimed that the latter had not upheld her end of the deal.

'Mindef buying up own land'
As LTAT is a unit under the Defence Ministry (Mindef), Deepak pointed out that the latest deal meant that the Defence Ministry was effectively buying back its own land which it gave to Raja Ropiaah at an inflated rate.

“LTAT, ironically, bought their own land which they had given to Raja Ropiaah (for Puspahanas) for RM72.5 million at RM130 million, giving Raja Ropiaah a profit of RM57.5 million plus RM13 million from us... and remaining 23 acres worth RM40 million (which it still has).

“The losers are the Defence Ministry and army officers who get cheated by Umno and cheated again by having to buy back the military land at double the price they gave it away for.

“Looks like Defence Minister Zahid Hamidi (above) has become Santa Claus,” he said.

Winners and losers

Raja Ropiaah/Awam Megah

Gains:

1. RM27 million from Defence Ministry in privatisation agreement.

2. RM13 million from Deepak in bank bond deal.

3. RM130 million from Boustead to buy the 200-acre land.

Question:

1. Has the RM100 million National Defence Study Centre being constructed and handed over to government according to the privatisation agreement?

Deepak/Astacanggih

Gains:

1. RM30 million from Boustead for 80% of Astacanggih share.

Lost:

1. RM13 million deposit payment to Roppiah in bank bond deal.

2. Cost to secure the land bond - unknown.

Defence Ministry/LTAT

Lost:

1. RM30 million to Deepak for 80% of Astacanggih share.

2. RM130 million to Roppiah for the 200-acre land. The land worth RM72.5 million when it was alienated to Roppiah in the privatisation agreement.

From surface value, the Defence Ministry or LTAT could suffered as much as RM87.5 million – RM30 million for Astacanggih share and RM57.5 million lost in land transaction.

Bitter over land deal, Deepak vows continued expose