Tycoon Lee denies financial woes, blames 'bankruptcy' on ex-employee

Property magnate, Lee Kim Yew denies that his finances are in dire straits despite a bankruptcy notice issued against him.

He claimed the matter was instigated by a former employee who allegedly blindsided him.

The ex-employee is said to be a US national and a lawyer named Patrick Healy, who used to work for his firm, Club Excellence Inc.

The company was closed due to the Covid-19 pandemic and distance, and he paid Healy US$570,000 (RM2.5 million) as a consultation fee.

Lee (above) said Healy then tried to sue him through US arbitration courts to demand RM3 million. When he was unsuccessful, Healy turned to Malaysian courts to declare the former bankrupt.

“(Due to the pandemic and other reasons) I decided against travelling to the US, so he took extreme measures in bringing the case to Malaysia and attack me through Malaysian bankruptcy laws.

“He thought I would be afraid of him, so he used such methods to declare me bankrupt,” he told a press conference at the Mines Beach Resort in Seri Kembangan, Selangor, today.

Lee did not offer a direct response when asked why is Healy demanding RM3 million from him.

Instead, Lee replied it was purely a personal attack against him and has nothing to do with business disputes.

“(Healy) has profited a lot from the company. On what grounds is he demanding RM3 million from me personally?” he asked.

Lee said even though Healy did not receive the RM3 million, he has already given the lawyer far more in terms of “good karma” through Lee's charity programmes and other assistance throughout the pandemic.

He repeatedly emphasised during the press conference that he was never declared bankrupt and did not receive notification from the Insolvency Department on the matter.

This is despite the Bankruptcy Act 1967 stipulating that once an adjudicating order and receiving order (AORO) has been issued by a court, it means the court has ascertained that a person is bankrupt.

According to data from the Insolvency Department, the Shah Alam High Court had declared Lee bankrupt on Jan 26.

Meanwhile, Lee revealed that he has written to the government and the Chief Secretary to the Government Mohd Zuki Ali for assistance and protection.

“I also wrote to the chief secretary, and hopefully as a fellow Malaysian, I can get some help and protection as a taxpayer.

“I think it is the government’s responsibility to serve the rakyat and I’m trying to get a meeting with him (Zuki) because I don’t want to be declared bankrupt.

“I did not choose bankruptcy, let alone to seek bankruptcy status,” he stressed.

Lee said he hopes to get government assistance to allow his lawyer to intervene in dealing with the Insolvency Department.

In addition, he will continue negotiations with Healy’s counsel to ask for the case to be withdrawn.

If the two sides cannot reach an agreement, Lee said he would deposit RM3 million with the Insolvency Department and ask the agency to negotiate with Healy.

Unsettling incident

Lee is the founder of Country Heights Holdings Group. He mentioned that he has relinquished his positions in the company as required by law after receiving the AORO.

He announced his resignation as the company’s executive chairperson on Feb 3 to facilitate the leadership change.

Lee claimed that upon receiving the AORO, his lawyers have been working with Healy’s counsel to seek an amicable resolution to the case.

While proceedings are still ongoing, an extract from the Insolvency Department’s database regarding his bankruptcy status was widely circulated on social media.

Lee said this breached his privacy, and he was contacted by the media and concerned friends.

In addition, Lee said the incident has unsettled his friends, so he decided to hold a press conference to clarify the situation.

Meanwhile, Country Heights issued a statement saying that its financial performance and operations are not affected by a “recent personal incident involving one of their shareholders”.

Its managing director Mircle Yap said the company has a competent management team and strong corporate governance to ensure its operations will continue without interruption.

The statement did not name the shareholder in question.

Country Heights is known for building landmarks such as the Multimedia Super Corridor in Cyberjaya, the Palace of Golden Horses Hotel, and the Mines International Exhibition and Convention Centre.

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