Wednesday, April 15, 2020
National Bank of Brunei free essay sample
One case from Brunei concerns Khoo Teck Phuat and his son Khoo Ban Hock. The latter was managing director of NBB w. Under his charge, the bank loaned more than Brunei $1 billion (which is equivalent to Singapore $1 billion) to companies controlled by his father. These loans were undocumented and unsecured. It was claimed that these offences under Brunei banking laws by Khoo Ban Hock were committed under the control and his direction of his father. When this dishonesty was discovered, the younger Khoo was sentenced to 3 years jail but later only served two. The elder Mr Khoo was not charged, but it was understood that he made restitution of about S$600 million to cover the losses suffered by various party. Mr Khoo Teck Puat later went on to become a billionaire, and was of the largest shareholders in megabank Standard Chartered when he died in 2004. However, after the NBB scandal, he kept a low profile. We will write a custom essay sample on National Bank of Brunei or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Tan Sri Khoo Teck Puat (Chinese: ; pinyin: Qiu Deba; Pe? h-oe-ji: Khu Tik-pua? t) a banker and hotel owner, who, with an estimated fortune of $4. 3 billion, was formerly Singapores wealthiest man. He owned the Goodwood Group of boutique hotels in London and Singapore and was the largest single shareholder of Britains Standard Chartered Bank. The bulk of his fortune came from shares in British bank Standard Chartered, which he bought up in the 1980s to help thwart Lloyds Banks proposed acquisition which many financiers deemed hostile. TheGoodwood Park Hotel in Singapore, built in 1900, is a historic landmark that recently underwent restoration. He was ranked as the 108th richest person in the world by Forbes magazine in 2004.  The estate of Tan Sri Khoo Teck Puat had donated $80 million to Duke University. 5] Khoo gained his early education at Saint Josephs Institution in 1930. He was educated up to Standard 8 prior to his marriage at the age of 17, and started working in OCBC bank as an Apprentice Bank Clerk by 1933. While attached with OCBC, Khoo served as the Chairman of CPF Board for a year in 1958. His rise in OCBC was rapid and he developed strong ties with Tan Chin Tu an until they had a difference of opinion which resulted him leaving OCBC in 1959 as the General Manager. He argued that OCBC was growing far too slowly and not opening enough branches in the smaller towns in Peninsular Malaya. In 1960, Khoo restarted his career in banking by founding Malayan Banking (now commonly known as Maybank) with a few partners in Kuala Lumpur. The bank grew rapidly to more than 150 branches within 3 years. In 1963, the bank purchased Goodwood Park Hotel, Singapore for $4. 8 million. In 1965, Khoo was ousted from Maybank by the Government of Malaysia under the then Deputy Prime Minister Tun Abdul Razak administration on the pretext of pumping the banks money into his own private firm in Singapore. The political enmity between Singapore and Malaysia has taken its toll. In 1968, Khoo bought over the Malayan Bankings Singapore properties including Goodwood Park Hotel and Central Properties for $50 million. While bitter with what the Malaysian government did, Khoo remained patriotic and kept his Malaysian citizenship. He ceased to be a director of Maybank in 1976. Though he had opened National bank of Brunei in the 1960s, his search for a legitimate banking vehicle continued. In 1981, Khoo bought Australias Southern Pacific Hotel Corp parent of the Travelodge chain. He sold it in 1988 as part of his asset liquidation process to make restitution to the Brunei government. In 1986 an opportunity arose when as a white knight, Khoo made a dramatic acquisition of a 5% stake in Standard Chartered Bank. He subsequently grew his stake to almost 15% to become the single largest shareholder. In 1990, Khoo made a contribution of S$10 million to the Singapore Governments 25th anniversary charity fund to help children, the elderly and the disabled. He was listed as Singapores richest businessman by Forbes magazine in 2003. When he died in 2004, he left his Standard Chartered stake, then approximately 11. 5%, to his children. They sold it to Singapores Temasek Holdings in March, 2006.