This is a unique case on many levels and one article will not do it justice. As such, KX-Unit has split the case into 2 segments that will be directly after each other.
This $600,000 case involves a multinational company from Singapore that owns multiple subsidiaries. The father is the CEO and heads the main company while his other sons manage the various subsidiaries (although we will focus primarily on Brother A and Brother B). Although ultimately the debtor in this case, however, is Brother A. So we will be sharing more about the father, Brother A, Brother B and our client in these articles.
Our client is a reputable businessman in the construction industry in Singapore and abroad. At the time of this case, he was featured on the news for his achievements. This was when Brother B gave a call to our client to catch up on life, explaining that he saw our client being featured and was happy for him.
At that time, our client was slightly taken aback because for the past 20 years, Brother B had not even called or kept in touch. But they were close friends in secondary school and our client tried not to think too much about it.
Until Brother B decided to broach the topic of business. He managed to find our that our client was involved in construction projects in Malaysia, and saw the opportunity to pitch his business proposal on behalf of his father’s company.
He first started talking about how his dad’s company has a proven track record and that they own multiple subsidiaries that would make for a good business partnership with our client. He told our client that his company would be able to secure raw materials at the lowest cost due to their economies of scale.
He spoke with confidence and set up meetings for our client together with his father. Very often, it was clear that Brother B and his father were doing their best to make our client feel at ease, and so it was not surprising that they had many nice words to say to our client. Some just wants to get in other’s good books.
While our client did feel that the praise and flatters were a little too excessive, he chose to think good of his fellow friend, that perhaps his family was having a difficulty with business and simply needs a helping hand. After all, no harm helping a fellow Singaporean and friend with a construction project in Malaysia, right? Plus, our client so happened to be sourcing for an intermediary for his construction project in Malaysia.
And so the discussion began. But this time, their father brought along Brother A (the debtor) instead. He briefly introduced Brother A to our client, telling our client that he is in-charge of one of the subsidiary that would be dealing with our client directly. From here, the discussions went on rather smoothly. They had the business proposal and timeline finalized, including the progression payment terms (meaning the payment would be transferred by our client according to the stage of completion), something that is expected of two professional business firms.
However, our client missed out on a crucial detail: the initial payment sum. One aspect of the progression payment term is the initial payment, which is meant to be a sum of money paid to the debtor so that he can kick-start the construction projects – by paying for raw materials, shipping costs, labor costs, etc.
This seemingly small detail has allowed the debtor to capitalize on the terms of contract and ask for payment from our client that are dubious and often the debtor has done so in a highly suspicious manner. For example, demanding that our client withdraw an initial payment sum in cold hard cash of up to $600,000 over just 3 occasions, delivering the cash to a local nightclub, and more.
The next article will expound on the details further. It will be posted on Thursday, 21 April on our Facebook page if you are keen to follow through.
Should you have any queries, please do feel free to contact KX-Unit at 8112 7790 or drop us a mail at enquiries@KX-Unit.com. Alternatively, you can visit our website at http://www.KX-Unit.com/