TURNING HO HUP AROUND

IF there is anyone who knows Ho Hup’s trail of troubles better, it must be Datuk Vincent Lye Ek Seang , the current deputy executive chairman.

Datuk created waves in the circle of builders when he bought into Ho Hup in December 2008 through his company Extreme Systems Sdn Bhd.
The best part of tis deal was he had bought into a company which was already a PN17 company with Bursa.

He is now seen as the saviour of the 50-year old Ho Hup turmoiled not only in accumulated losses due to mismanagement but also what has surfaced as a tussle between two groups trying to wrest control of the management.


The EGM scheduled for Feb 4 will decide whether the group led by ousted managing director Low Tuck Choy or the current management team headed by Datuy Lye, will survive and win the shareholders’ confidence which will give them the mandate abd suport needed to get the show on the road for Ho Hup.

Datuk Lye’s 13 months in Ho Hup has not been an easy journey but helping him with the clean up is Lim Ching Choy whom he brought over from Magna Prima where he still holds a small stake.

Ching Choy’s experience with Magna Prima and also his experience in turning around the Mah Sing Group augurs well in his makeover of Ho Hup which has so far pulled the company out of situation of threat to its operations.

One of the most shocking experiences for Datuk Lye was having to go to Madagascar to gace the government there at a time when Ho Hup was locking in intenrational arbitration over a project that was abandoned.

The board authorised Datuk Lye to make the trip in between May and June last year to meet the president of Madagascar Andry Rajoelina to reach a settlement.

Thia was at a time when there was instructions to detain any official of Hop Hup who attempted to enter the African island nation.

A month later an agreement was reached averting a potential liability of USD 43 million (RM150.4 million) and any loss of the plant and machineries which had prior toi that been seized from Ho Hup.

The plant and macineries which had a book value of RM33 million coild be used for future projects not only in Madagascar but also back in Malaysia.

Datuk Lye was not just a chip of the old block and true to his prowess in wheeling and dealing, managed to sign a memorandum of unerstanding between Ho Hup and the Madagascar government to assist their state-owned company - KRAOMA S.A. in the reinforcement and optimisaton.

Next on Datuk Lye’s agenda was to rescue and rehabilitate troubled projects that had been delayed - the most significant of which was the Jalil Sutera property development project.

Ho Hup re-commenced its contruction actiivities in December 2008 and managed to complete it ahead of the deadline given by the Ministry of Housing and Local Government which responded after purchasers had lodged complaints against the company’s hanling of the project.

One other project which had suffered a similar fate were also rescued such as the Phase 4 which was fully completed in January 2009 eight months ahead of schedule and just six weeks after the new managemen team took over.

The handing over of keys to the purchasers was officiated by the then Housing Minister Datuk Seri Ong Ka Chuan.

This was followed by Phase 5 which was completed in June 2009, three months ahead of schedule whereas Phase 6 and Phase 7a were completed a month and three months ahead of scheduled in August 2009 and September 2009 in August and September 2009 respectively.

The subsequent Housing Minister Datuk Seri Kong Cho Ha went on to present the keys to the purchasers and presented a plaque commending Ho Hup for its ability to revive and complete projects.


Ends