SHAH ALAM – A local rice and commodities trading company Prolink Marketing Sdn. Bhd. is suing OCBC Bank over alleged dishonesty and negligence that caused it losses amounting to RM289 million.
The company, which has been in business for over two decades, claims that the bank’s ‘oppressive act’ caused it contract losses, accumulated profit losses and outstanding bank loans that total RM289 million.
The writ of summons was first filed in January 2019 and the matter was heard in the Shah Alam High Court on January 23 this year. The next hearing is on February 18.
A copy of the summons that was sighted by MoneyMalaysia reveals that the company claims OCBC Bank had breached the terms and conditions of its receivable purchase facilities and changed the stipulations without the agreement of the company.
Receivable purchase facility is a type of asset-financing arrangement in which a company uses its outstanding invoices or money owed by its customers to receive financing from a bank to have upfront cash for working capital purposes.
Prolink Marketing also claimed that it was instructed to settle its facilities with OCBC within an unreasonably short period of time, and the bank’s delay in releasing its assets which have been placed as collateral rendered it unable to apply for credit facilities from other banks to continue its business.
The ‘oppressive act’ of the bank also caused the company to exhaust all their internal funds, unable to fullfil their contracts and unable to service their loans with other banks, according to the summons.
The summons also mentioned that ‘the bank was changing their terms and conditions at their whims and fancies’.
OCBC Bank was unavailable for comment.
OCBC Bank is the longest established Singapore bank, formed in 1932 from the merger of three local banks, the oldest of which was founded in 1912.
It is now the second largest financial services group in Southeast Asia by assets and one of the most highly-rated banks, with an Aa1 rating from Moody’s.
Recognised for its financial strength and stability, OCBC Bank is consistently ranked among the World’s Top 50 Safest Banks by Global Finance and has been named Best Managed Bank in Singapore by The Asian Banker.
In October last year, OCBC Bank was named the World’s Best Consumer Bank by international financial publication Global Finance.
The chairman of OCBC Bank (Malaysia) Bhd. and OCBC Al-Amin Bank Bhd. is veteran banker Tan Ngiap Joo.
Former Bank Negara deputy governor and special adviser Datuk Ooi Sang Kuang is the chairman of the parent Oversea-Chinese Banking Corp (OCBC) Ltd based in Singapore. – MoneyMalaysia.my