Genting Americas Inc Sued For Rm2 6bil By Jv Partner Over Alleged Fraud

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Genting Americas Inc is an indirect wholly-owned subsidiary of Genting Malaysia Bhd. (Facebook pic)
PETALING JAYA: Genting Americas Inc (GAI), an indirect wholly owned subsidiary of Genting Malaysia Bhd (GENM), is being sued for RM2.6 billion by joint venture partner RAV Bahamas Ltd for alleged fraud.
According to a filing with Bursa Malaysia, GAI is named in a complaint filed by RAV Bahamas in the US district court for the southern district of Florida, served on Oct 11.
The complaint involves the operations of Resorts World Bimini in the Bahamas.
“GAI is of the view that the complaint is baseless and totally without merit and will vigorously defend against the complaint,” GENM said in its filing.
According to the filing, Resorts World Bimini is owned and operated by BB Entertainment Ltd, in which GENM indirectly holds 78% interest while RAV Bahamas holds the remaining 22% interest.
GAI is an affiliate company of BB Entertainment.
Bahamas-based news portal The Tribune reported that GAI is essentially accused of using its 78% majority ownership, plus board and management control, to conceal how it funnelled hundreds of millions of dollars in liabilities incurred elsewhere in its global empire onto the Resorts World Bimini’s books.
The Tribune reported RAV Bahamas as claiming GAI “has deliberately kneecapped” its attempts to gain a true understanding of Resorts World Bimini’s true financial position by denying “full access” to the property’s financial records and its calls for an independent audit.
It said the financial statements for BB Entertainment reveal that the project has consistently incurred annual losses amounting to tens of millions of dollars ever since RAV Bahamas teamed with GENM some 12 years ago in 2012. - FMT

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