Legal proceedings against the founder of MYAirline (MYM, Kuala Lumpur Subang) and four other entities dating from mid-2022 have come to light in the wake of MYAirline's collapse earlier this month. Allan Goh Hwan Hua, along with i-Serve Online Mall Sdn Bhd (ISOM), Bright Moon Venture PLT (BMV), QA Smart Partnership PLT (QAS), and Trillion Cove Holdings Bhd (TCH), are defending an action brought against them in the Malaysian High Court by 15 individual investors who allege the defendants have failed to repay monies lent to them.
Malaysia's Edge portal reports on the legal proceedings related to an MYR8 million ringgit (USD1.67 million) loan. The plaintiffs say that between November 2021 and June 2022, the defendants failed to make the agreed monthly repayments. Alleging a breach of contract, the plaintiffs now demand full repayment of the principal amount, arrears, and 5% interest. However, counsel for the defendants have asked the court to strike out the matter, which was first filed in June 2022, saying it is a nullity and abuse of process.
Goh's direct links with the other four defendant entities include a shareholding in ISOM and a shareholding and directorship in TCH, which owns 10% of MYAirline. The airline abruptly ceased operations on October 11, 2023. However, the plaintiffs say Goh is the "controlling mind" of the four corporate defendants. Goh remains in police custody after being arrested last week for questioning under Malaysia's Anti-Money Laundering, Anti-Terrorism Financing, and Proceeds of Unlawful Activities Act (2001). Also arrested were Goh's wife and adult son. However, all three have since been released without charges.
Goh's colourful business activities have come under increased scrutiny after MYAirline collapsed. Police raided the offices of ISOM and TCH in late 2021, and the country's central bank froze their bank accounts. However, BMV and QAS have maintained their business activities (and bank accounts) largely uninterrupted. Counsel for Goh told the court that the freezing orders made it impossible to make the repayments and rendered the plaintiff's claims invalid. However, counsel for the plaintiffs said BMV and QAS could have made the repayments.
The collapse of MYAirline is not directly connected with Goh's four-day stint as a guest of the Malaysian government. Instead, authorities are focusing on other business entities he is involved with. Recent money laundering investigations have tainted both ISOM and TCH, and TCH is a direct shareholder in MYAirline. Malaysian police have told local media outlets that investigations are ongoing but they have recently frozen multiple bank accounts. Goh has not been charged with any offences at the time of writing. ch-aviation does not say he has committed any wrongdoing, only that he was in custody and under investigation.
His application, along with those of the four other defendants, to have the matter before the High Court struck out, will be heard on November 22, 2023.
